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GP Global APAC provides restructuring update; requests further six-month extension of debt moratorium

05 Aug 2021

Lawyers representing GP Global APAC Pte. Ltd. (GP APAC) on Tuesday (3 August) submitted an application for a six-month extension of the company’s debt moratorium to the High Court of the Republic of Singapore.

The court earlier on 2 March 2021 granted a six-month debt moratorium to GP APAC which lasted until 4 August 2021.

The latest court submission obtained by Singapore bunkering publication Manifold Times detailed the restructuring progress of GP Global Group and subsidiary GP APAC over the past six-month period.

Update on restructuring progress over the past six months

To date, GP APAC has raised approximately SGD 8.8 million for the Group and/or GP APAC’s creditors from the sale of its office unit at 8 Temasek Boulevard #24-03 Suntec Tower; the sale was completed on 19 March 2021, according to the document.

The Group has also completed the sale of its bitumen processing plant in the United Arab Emirates and is currently focused on completing the sale of its Fujairah Terminal, which is expected to be completed around end of September 2021.

Further, the Group is also concurrently selling its assets located in Africa.

Additional USD 45 to 60 million contribution from India assets

A key component of the Group’s and GP APAC’s restructuring is raising a sum, targeted to be between USD 45 to 60 million, through the sale of its Indian Entities and/or assets which is expected to take between six to 24 months, say company lawyers.

GP Petroleums Ltd (GPPL), a publicly owned and listed company on the National Stock Exchange of India where GP Global Group is a 73% majority shareholder, is expected to be sold; the sale process is expected to take around nine months to complete, subject to finding a suitable buyer.

“It is imperative that the Moratorium be extended to allow the Group to execute the sale of the Indian Entities to a suitable buyer,” stated lawyers representing GP APAC.

“In this regard, the ultimate beneficial owners of the GP Global Group, i.e. the Goel Family, are assisting in seeking out a ‘white knight’ investor to purchase the Indian Entities, with a view to finalising the strategy by end of September 2021.”

Request for further six-month extension of debt moratorium

Moving forward, GP APAC lawyers requested for more time to carry out restructuring operations due to the impact of the Covid-19 pandemic in India, where the group’s assets (worth between USD 45 to 60 million), accounting, and reporting capabilities are located.

“The COVID-19 pandemic in India worsened in or around April 2021 with the uncontrollable spread of the ‘delta’-variant of the virus. This has affected the ability of businesses in India to operate, and representatives of these business from accessing their offices, and the relevant records and resources therein to carry out their work,” explained lawyers.

“The impact of this has been two-fold. First, the progress with the sale of the Indian Entities has not matched the expected pace, as the Group has faced significant difficulty in liaising with its advisers there and giving them the relevant instructions.

“Second, business sentiment in India has been largely depressed – which in turn affects the expected recoveries from assets that are located there. For this reason, more time is required for GP APAC and the Group to locate suitable buyers for its assets, structure and execute the various sales processes thereof, and ensure that the value of these assets is not compromised in the process.”

The legal team added several of GP APAC’s major unsecured creditors, who hold up to USD 214.6 million in total debt owed by GP APAC, have also renewed their support for the restructuring by way of letters of support for an extension of the Moratorium.

“This further indicates the workability of GP APAC’s intended scheme and that it would be acceptable to the general run of creditors. Indeed, the support of crucial and significant creditors for an intended scheme or compromise is a material consideration that militates in favour of extending a Moratorium,” they state.

A list of earlier coverage regarding GP Global can be found below:

Related: Singapore High Court approves GP Global APAC’s debt moratorium application
Related: Singapore: Sale of GP Global APAC’s SGD 8.5 million Suntec office to be discussed
Related: GP Global APAC acts to prevent minority creditors ‘stealing a march’ over others
Related: GP Global APAC files for six-month debt moratorium with Singapore High Court
Related: Argus Media: GP Global asset sale talks drag on valuation gap
Related: ExxonMobil Asia Pacific takes GP Global APAC to court over USD 2.8 million bunker claim
Related: Restructuring advisor flags up ‘accounting irregularities’ in GP Global books
Related: Gulf Petrol Supplies files complaint against GP Global unit for fraudulent behavior
Related: Second arrest warrant issued for GP Global’s ‘GP B3’ over outstanding bills from creditors
Related: GP Global considering sale of assets in an effort to repay creditors
Related: GP Global tanker ‘GP B3’ detained in India due to loan defaults with creditors
Related: Argus Media: GP Global clarifies that it has shut only lesser performing trading desks
Related: Argus Media: GP Global rules out asset sales in restructuring
Related: GP Global engages restructuring specialists following credit pull and internal fraud
Related: GP Global internal investigations reveal Sharjah and Fujairah staff involved with fraud
Related: GP Global repudiates rumours and proceeds with restructuring as strategic move


Photo credit: Manifold Times
Published: 5 August, 2021

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