Troubled Perisai Petroleum Teknologi, a Malaysian associate company of Emas Offshore, has got some breathing room from creditors thanks to the help of the government.
Perisai had earlier applied to the Corporate Debt Restructuring Committee – a platform formed by the Malaysian government in 1998 for corporate borrowers and their creditors to work out debt resolutions without resorting to legal proceedings – for help.
The CDRC accepted the application and has since issued a letter the following day to lenders of Perisai in Singapore and Malaysia, as well as the trustee of its outstanding S$125m notes.
As a result, all lenders are required to observe an informal standstill with immediate effect, and withhold proceedings against the Perisai group and its subsidiaries.
Perisai will have 60 days to submit a proposal for a debt restructuring scheme, after which CDRC will call for a meeting with the lenders.