Chinese private energy company Brightoil Petroleum has secured further financing support from new partner China Huarong Overseas Investment to repay its outstanding debts.
Brightoil said it has entered into settlement agreements with several creditors including Toyota Tsusho Corporation, Broad Action, Luso International Banking, Petco Trading Labuan Company, Haitong Global Investment SPC III, Qatar National Bank, and Slaughter and May.
The company and its relevant subsidiary have also entered into loan restructuring agreements with Bank of China and China Huarong Overseas Investment Holding.
According to Brightoil, China Huarong Overseas Investment Holding had already provided around $362m in re-financing for periods of five to twelve years for various Brightoil subsidiaries at the end of 2019 for acquiring and restructuring of the company’s liabilities. Hurong has now provided a further $30m in loan financing to support the company’s operation and for repayment of outstanding debts.
Brightoil expects the resolution of its founder Sit Kwong Lam’s bankruptcy proceedings will be expedited as the company’s resolution of the debt progresses.
Brightoil was hit by financial crisis in 2019 and sold off its entire fleet of 15 vessels made up of five VLCCs, four aframax tankers and six bunkering vessels in order to increase liquidity.