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Brightoil to propose restructuring scheme for Singapore subsidiary in Jan 2021

24 Dec 2020

Hong Kong-based Brightoil Petroleum (Holdings) Limited (Brightoil) is planning to propose a restructuring scheme for subsidiary Brightoil Petroleum (Singapore) Pte Ltd, a former bunker supplier operating at the republic, in January 2021, according to a Wednesday (23 December) operational update.

Singapore proceedings

The restructuring scheme will be proposed during the next hearing at the Singapore Court which has been fixed on either 18 January 2021 or 25 January 2021; it has been planned for implementation by end of January 2021, subject to the comments to be received from the scheme creditors.

Since the last update, the net proceeds from the sale of Brightoil’s six series vessels, namely Brightoil Lion and Brightoil Grace, by the High Court of Singapore were successfully paid out to the respective parties. As of end of September 2020, the legal cases in Singapore court due to arrested vessels were completed.

Hong Kong proceedings

An earlier winding up petition filed by a creditor with the High Court of Hong Kong in relation to an alleged unpaid sum pursuant to a deed of guarantee allegedly signed by Brightoil has reached a settlement on 20 October and the winding up petition was dismissed by an order of the High Court on 9 November.

Loan with Luso International Banking

In addition, Brightoil’s loan restructuring and loan settlements with one of its major creditors, Luso International Banking Ltd, has been fully paid off pursuant to the terms of the respective settlement agreements.

Upstream business

The company continued to make progress with its upstream business. Though Covid-19 has severely damaged global economic activity the production of the Group’s oil fields, oil wells and natural fields was not affected, it says.

As of 30 September 2020, the daily output of Caofeidian Oilfield was 55,000 barrels. From January to September 2020, crude oil output reached 13.425 million barrels, 81.2% of the annual plan.

As of 30 September 2020, the total daily natural gas output of the onshore Dina 1 and Tuzi gas field was 3.147 million cubic meter. From January to September 2020, natural gas output reached 809.0687 million cubic meter, 77.1% of the annual plan.

Brightoil has earlier stated it intends to focus on its upstream business, going forward.

Related: Brightoil debt restructuring progresses, proceeds from vessel sales hindered by COVID-19
Related: Brightoil Petroleum publishes notice regarding winding-up application filed by creditor
Related: Brightoil to focus on upstream business in future development following HKSE delisting

Earlier developments of Brightoil (since late 2017 to date) can be found in the search results here


Photo credit: Brightoil Holdings Limited
Published: 24 December, 2020

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