Perisai Petroleum, an oilfield services provider from Malaysia, has received a notice from its noteholders, demanding an immediate payment of the redemption amount of the S$125 million notes together with interest.
To remind, Perisai had hoped it would be able to delay the payment date of S$125 million notes to February 3, 2017. The maturity date expired on October 3, 2016, with shareholder rejecting Perisai’s proposal to put off the payment.
Commenting on the latest move by the noteholders who seek the immediate payment, Perisai said it was seeking legal advice on the demand and “will make the necessary announcements as and when necessary.”
Perisai last week said it would not be able to meet the payment of the principal and interest of notes, and as such, the company is insolvent.
It also got a status of a PN17 Company. 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.
Providing reasons for not being able to pay, Perisai last week 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, as a result, Perisai Capital, would not be able to pay the noteholders.
Offshore Energy Today Staff