Perisai Petroleum, a struggling Bursa Malaysia-listed oilfield services provider, is now a PN17 company, after failing to pay its interest to noteholders, and declaring itself insolvent.
According to a definition by KLM Management, PN17 is issued by Bursa Malaysia, to companies that are in financial distress. Companies that fall within the definition of PN17 will need to submit their proposal to the Approving Authority to restructure and revive the company in order to maintain the listing status. If a company fails to do so, it will be delisted from the Malaysian stock exchange.
Perisai on Wednesday said its Perisai Capital subsidiary would not be able to meet the payment of the principal and interest of notes, and as such, the company is insolvent.
Providing reasons for not being able to pay, Perisai said it was, together with subsidiaries, operating under adverse financial conditions.
“With the current market downturn, the Group’s business has been negatively affected by market conditions in the oil & gas sector, including weak crude oil prices and slow economic growth,” Perisai said.
“The offshore oil & gas industry has remained uncertain and volatile and as the market remains depressed in 2016, the Group continues to see challenging times as the demand for the Group’s offshore assets and services continue to remain low,” the company said, adding that a result Perisai Capital, it’s subsidiary, is not able to meet payment of the principal and interest in respect of the Notes due on 3 October 2016.