Keppel comes to KrisEnergy’s rescue

Keppel comes to KrisEnergy’s rescue

Keppel Corp is coming to the rescue of endangered KrisEnergy, taking its stake in the restructuring firm to 67.33% via a preferential share offering.

KrisEnergy has proposed non-renounceable and non-underwritten preferential offering of up to S$140m in principal amount of senior secured zero coupon notes due 2024, in the denomination of S$1.00 for each note, with up to 1,252,128,996 free detachable warrant.

Keppel, through its wholly-owned indirect subsidiary, Devan International, currently has a 39.99% in beleaguered KrisEnergy.

KrisEnergy said the company’s financial condition and prospects have been impacted by the fluctuation in the oil and gas and offshore marine sectors, which has led to increasing pressure on the company’s ability to comply with financial maintenance covenants in its various financing arrangements.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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