SINGAPORE (THE BUSINESS TIMES) - Troubled oil and gas group KrisEnergy has received a requisition notice from two shareholders to convene an extraordinary general meeting (EGM) over concerns about the mainboard-listed company's debt restructuring.
The shareholders are Mr Ng Kay Yip and Serle Investments. They said they hold 21.13 per cent of KrisEnergy's shares, the company revealed in a bourse filing on Saturday (April 10). Serle is represented by Mr Michael Yeoh Sock Siong.
In a requisition notice dated April 7, they raised concerns over the state of KrisEnergy's restructuring, and called for a resolution to form a committee of minority investors, of up to five members.
The committee would be able to appoint an independent financial adviser (IFA) and other advisers to review KrisEnergy's financial position and propose an alternative restructuring plan if needed. Serle and Mr Ng have asked for the EGM to be held within 21 days from the letter.
The duo also want KrisEnergy to bear the costs for the advisers, and to cooperate in providing the committee with information.
In the notice, Mr Ng and Serle said they are "very concerned" about KrisEnergy's disclosure on March 31 that production from the Apsara Oil Field project was lower than expected, casting "material uncertainty" over the restructuring.
This stands in contrast to "previous representations regarding the profitability forecast" of the company's Apsara Oil Field project, both shareholders said.
They also questioned if the fall in production may have been counterbalanced by rising oil prices, as KrisEnergy's announcement had "omitted to discuss" the impact of oil prices.
Mr Ng had written to KrisEnergy in mid-February to request an IFA be appointed, the requisition notice stated. He had also raised additional questions, including about the advisory fees incurred for the original restructuring. But KrisEnergy has not responded to Mr Ng's queries, the notice added.
"Given that KrisEnergy has acknowledged the support of its shareholders, especially minority shareholders, is critical to any restructuring proposal, we are puzzled by the existing level of communication from (the company)," Mr Ng and Serle said in the notice.
"Moreover, we believe that it would be to the benefit of all stakeholders if minority shareholders were granted more visibility over and are able to contribute ideas towards the restructuring process."
In the bourse filing on Saturday, KrisEnergy confirmed that Mr Ng and Serle meet the required shareholding threshold, of at least 10 per cent, to requisition an EGM. The company is seeking legal advice on the matter.
Trading in KrisEnergy shares was suspended in August 2019.