Perisai Petroleum Teknologi vulnerable after default notice served

Perisai Petroleum Teknologi vulnerable after default notice served

Kuala Lumpur-listed offshore firm Perisai Petroleum Teknologi has received a notice from the trustee of its S$125m ($91.9m) notes warning that it has breached the terms and conditions of its notes for non-payment after failing in efforts to delay maturity because of its inability to pay.

Perisai has been engaged with noteholders on an alternative proposal, however now that notice has been served by the trustee noteholders have the ability to call in the notes as due and payable. This has not occurred as yet, but leaves the company in a vulnerable position with investors.

Together with its joint venture partner, Emas Offshore, the Malaysian firm has received an indicative offer of financing from a financial institution where $20m would be earmarked towards a resolution with note holders.

EMAS Offshore, part of Singapore’s Ezra Holdings, owns 11.8% of Perisai shares. The two companies also own SJR Marine together, with Perisai having a put option in place where it has the right sell its 51% stake to EMAS for $43m.

Perisai said that business and operations are not affected by the default in payment.

Meanwhile, the company’s managing director Datuk Zainol Izzet Mohamed Ishak has been forced to sell 36.526 million shares in the company due to certain financial arrangements, reducing his stake to a little over 2%.

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.

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