Chinese private energy company Brightoil Petroleum has entered into a major debt restructuring deal with eight Chinese banks.
The eight banks are led by ICBC, and also include Minsheng Bank, Bank of China, China Construction Bank, Baoshang Bank, Bank of Jiangsu, Industrial Bank and Ping An Bank.
Under the deal, the eight banks will provide a loan of RMB15.6bn ($2.2bn) in total to support the debt restructuring of the company and promote the company’s future development.
Brightoil was hit by financial crisis in 2019 and sold off its entire fleet of 15 vessels including five VLCCs, four aframax tankers and six bunkering vessels in order to increase liquidity.
The company’s founder Sit Kwong Lam was also declared bankrupt by a Hong Kong court in April last year and he was forced to quit the chairman’s role.
Brightoil is now pushing forward the digital transformation of the company, having launched online platforms Brightoil Online in 2018 and Marine Online in 2019.
Photo: Thomas Timlen