On Sept 9, KrisEnergy obtained a threemonth debt moratorium from the court — half the duration it had requested on Aug 14. Up until Nov 14, the company will be protected from any enforcement actions and legal proceedings launched by creditors. KrisEnergy says the moratorium will provide “breathing space and room” to restructure its liabilities in an “equitable” manner for all stakeholders and return it to “viability in the shortest time possible”.
(Sept 23): Like many oil and gas companies, KrisEnergy has been severely affected by the prolonged slump in oil prices over the past five years. Both exploration and production have become riskier undertakings. The company, which has been in the red since its 2013 IPO, now faces insolvency.
Through a restructuring process in 2016 — supported by its largest shareholder, Temasek-linked Keppel Corp — the company was able to reschedule its borrowings and avoid going bust. Three years on, unable to execute a turnaround, KrisEnergy is about to embark on another restructuring process, casting doubts on its ability to continue as a going concern.
