Felicia Tan Published on Sat, Jun 05, 2021
Independent upstream oil and gas company KrisEnergy has submitted a winding-up petition to the Grand Court of the Cayman Islands on June 4.
The hearing date for the petition has yet to be fixed.
The decision to wind up the company was due to it being unable to pay its debts. It will subsequently proceed to liquidation, having taken into consideration several factors including the company’s liabilities, which exceed the value of its assets; the “significantly lower” ultimate recovery and cashflow from the Apsara Mini Phase 1A development; the lack of an “acceptable” alternative restructuring option; as well as the lack of near-term infusion of funds available to the company.
KrisEnergy’s decision to wind may not affect Keppel Corporation, who is KrisEnergy’s significant direct creditor.
In a May 3 research note, CGS-CIMB Research analyst Lim Siew Khee remained positive on Keppel Corporation as she believes the group’s gains derived from its divestments and restructuring could cushion any potential impairment on its investment in KrisEnergy.