KUALA LUMPUR: Perisai Petroleum Teknologi Bhd has been classified as a Practice Note 17 (PN17) company after its unit Perisai Capital (L) Inc defaulted on S$125mil debt notes due on Oct 3.
The upstream oil and gas provider said in a statement to Bursa Malaysia that it therefore must regularise its financial position within 12 months and implement the regularisation plan within the timeframe stipulated by either the Securities Commission or Bursa Malaysia Securities Bhd.
If it fails to comply with the obligations to regularise its condition, the company’s listed securities will be suspended from trading and de-listing procedures will be taken against it.
Perisai Capital defaulted on its debt repayment after the holders of its S$125mil (RM377.27mil) 6.875% medium-term notes rejected its proposals to, among others, defer the payment of interest due on Oct 3 and to postpone the maturity date to Feb 3, 2017.
In a separate filing with the exchange on Wednesday, Perisai said it was insolvent as it would not be able to meet the payment of the principal and interest of the notes when the same, which is guaranteed by the company, was demanded.
In a previous announcement, the company said that it and Emas Offshore Ltd (EOL), its joint-venture partner in Emas Victoria (L) Bhd and SJR Marine (L) Ltd, had on Sept 30 received an indicative offer of financing from a financial institution.
“Part of the amount from the indicative offer would be earmarked towards a mutually acceptable resolution with the company’s noteholders with regards the notes through the availability to the Perisai Group of a sum of approximately US$20mil (RM82.98mil),” Perisai said on Oct 3.
“It is on this basis that the company intends to engage with the noteholders on an alternative proposal.”
It expected this resolution to include a restructure of the due date of the principal and interest of the notes, thereby returning Perisai Capital back to solvency.
EOL owns an 11.83% direct stake in Perisai. In turn, Perisai has the choice to exercise its put option to sell its 51% stake in SJR to EOL for US$43mil.
EOL’s ultimate shareholder is Singapore Exchange-listed Ezra Holdings Ltd, which holds a 22.5% stake in Perisai.
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