Independent upstream oil and gas company KrisEnergy has submitted a winding-up petition to the Grand Court of the Cayman Islands on June 4.
The hearing date for the petition has yet to be fixed.
The decision to wind up the company was due to it being unable to pay its debts. It will subsequently proceed to liquidation, having taken into consideration several factors including the company’s liabilities, which exceed the value of its assets; the “significantly lower” ultimate recovery and cashflow from the Apsara Mini Phase 1A development; the lack of an “acceptable” alternative restructuring option; as well as the lack of near-term infusion of funds available to the company.
See: KrisEnergy expects adverse impact on revenue due to lower production from the Apsara wells
KrisEnergy’s decision to wind may not affect Keppel Corporation, who is KrisEnergy's significant direct creditor.
See also: Keppel Corporation says it supports KrisEnergy's restructuring following final proposal on Aug 21 and Keppel Corp to determine 'best course of action' on KrisEnergy’s restructuring
In a May 3 research note, CGS-CIMB Research analyst Lim Siew Khee remained positive on Keppel Corporation as she believes the group’s gains derived from its divestments and restructuring could cushion any potential impairment on its investment in KrisEnergy.
See also: Keppel Corporation divestment gains to cushion against potential impairment on KrisEnergy: CGS-CIMB
