Tycoon Kris Wiluan's KS Energy placed under interim judicial management: High Court

Former KS Energy chairman, CEO and director Kris Wiluan is facing 112 charges for alleged market rigging and false trading. PHOTO: ST FILE

SINGAPORE - The High Court has granted OCBC Bank's application to place KS Energy and its principal subsidiary, KS Drilling, under judicial management after the bank sent letters of demand to the two companies and six other subsidiaries for a US$230.7 million ($313.6 million) term loan and a US$5 million bridging loan to KS Drilling.

High Court Justice Aedit Abdullah granted the application by OCBC, which holds 61 per cent of the group's debt, following a 2½-hour-long "heavily contested" hearing on Monday morning (Aug 31), with Mr Andrew Grimmett and Mr Lim Loo Khoo of Deloitte & Touche appointed as interim judicial managers.

KS Drilling is an 80.09 per cent-owned subsidiary of KS Energy, which provided US$150 million in guarantees for the term loan.

KS Energy group chairman and chief executive officer Richard Wiluan had pledged full commitment to working with OCBC to resolve the bank's concerns and maximise the interest of all creditors and the company.

His father, Mr Kris Wiluan, KS Energy's former chairman, CEO and director, who is facing 112 charges for alleged market rigging and false trading, told the Singapore Exchange on Aug 17 that he has resigned to "allow him to focus on his defence and to not let KS Energy group be distracted or be entangled by his personal problems".

The elder Mr Wiluan noted: "Like all companies in the offshore and marine sector, KS Energy is facing unprecedented challenges from the devastating impact of Covid-19 on the global economy."

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