Singapore offshore operator Marco Polo Marine has announced that its Indonesian subsidiary, PT Marcopolo Shipyard, has filed an application to place itself under a Penundaan Kewajiban Pembayaran Utang suspension of debt payment plan in accordance with Indonesia’s laws on bankruptcy and suspension of debt payment.
The move by Marco Polo will put a temporary restraint of legal proceedings against the subsidiary for 45 days.
A judge has been appointed, and a team of administrators designated, to assist the shipyard in managing its assets.
Penundaan Kewajiban Pembayaran Utang is a form of court-supervised debt restructuring plan, and the yard is now required to submit a debt restructuring plan for its creditors to consider at a creditors’ meeting which will require the consent of the majority of creditors.
If a restructuring plan is not approved, Marcopolo Shipyard is likely to be placed into bankruptcy.
Marco Polo Marine’s future was thrown into serious doubt earlier this month, after the company said that a restructuring and refinancing proposal announced in April had met resistance from its lenders.
On Friday, the company filed an application to the Singapore High Court for a scheme moratorium to restrain all legal proceedings against the company while it tries to finalise a scheme of arrangement with creditors as part of the proposed restructuring and refinancing deal.