Business

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

The Covid-19 pandemic in India, where the group’s assets of between USD 45 to 60 million, accounting, and reporting capabilities are located have affected expected pace of restructuring ops, explains legal team.

Published

2 years ago

August 5, 2021

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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:

Photo credit: Manifold Times
Published: 5 August, 2021

Vessel Arrest

Malaysia: MMEA detains tanker for illegal anchoring in East Johor waters

Panama-registered vessel was operated by 17 crew members, aged between 21 to 58 years, from Pakistan, India and Bangladesh.

Published

21 hours ago

November 29, 2023

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Malaysia: MMEA detains tanker for illegal anchoring in East Johor waters

The Malaysian Maritime Enforcement Agency (MMEA) on Tuesday (28 November) said a Panama-registered tanker has been detained for illegally anchoring in East Johor waters on 27 November.

MMEA Tanjung Sedili Zone acting director Maritime Cmdr Mohd Najib Sam said the tanker was detained by a patrol boat at 11am at 15.8 nautical miles northeast of Tanjung Penawar.

The captain of the vessel failed to produce any documents that permission had been obtained to anchor in Malaysian waters.

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The vessel was operated by 17 crew members, aged between 21 to 58 years, from Pakistan, India and Bangladesh.

The case will be investigated under Section 491B(1)(L) of the Merchant Shipping Ordinance 1952 for anchoring without permission. If found guilty, individuals may be fined not exceeding MYR 100,000 or face an imprisonment term of not more than two years, or both.

Manifold Times previously reported law firm Oon & Bazul LLP sharing on steps shipowners should keep in mind before anchoring and conducting STS operations in Malaysian waters to avoid detention.

Photo credit: Malaysian Maritime Enforcement Agency
Published: 29 November, 2023

Alternative Fuels

DNV paper outlines bunkering of alternative marine fuels for boxships

Third edition of its paper series focuses on LNG, methanol and ammonia as alternative bunker fuel options for containerships; explores bunkering aspects for LNG and methanol.

Published

21 hours ago

November 29, 2023

Admin

DNV paper outlines bunkering of alternative marine fuels for boxships

Classification society DNV recently released the third edition of its paper series Alternative fuels for containerships, focused on LNG, methanol and ammonia as alternative bunker fuel options for containerships.

In its updated paper series, DNV examined the different alternative marine fuel options and provided an overview of the most important technical and commercial considerations for the containership sector.

It explored the bunkering technology for LNG, bunkering infrastructure for methanol, and availability and infrastructure of ammonia.

Building on the foundation laid in the second edition, which focused on the most important aspects of methanol as a fuel, this latest third edition delves deeper – exploring the technical intricacies and commercial considerations associated with adopting methanol as an alternative fuel for containerships.

Furthermore, it provides an overview of crucial aspects related to ammonia and discusses its potential as an alternative fuel for containerships.

Amongst others, the new edition of the paper looks at the following aspects:

Technical design considerations for methanol
Commercial implications of adopting methanol as an alternative fuel
Ammonia's potential as an alternative fuel
Availability, infrastructure and ship fuel technology for ammonia
Major updates based on the latest IMO GHG strategy decisions at the MEPC 80 meeting

Note: The third edition of DNV’s full paper titled Alternative Fuels for Containerships can be found here.

Photo credit: DNV
Published: 29 November, 2023

Alternative Fuels

EDF, LR and Arup launch tool scoring ports’ potential to produce and bunker electrofuels

Tool is also applied to three different port scenarios, including ports exploring fuel production and bunkering, ports exploring fuel exports, and ports exploring fuel imports and bunkering.

Published

21 hours ago

November 29, 2023

Admin

EDF, LR and Arup launch tool scoring ports’ potential to produce and bunker electrofuels

Lloyd’s Register (LR) Maritime Decarbonisation Hub and Environmental Defense Fund (EDF), in collaboration with Arup, on Tuesday (28 November) introduced the Sustainable First Movers Initiative Identification Tool, a system to help shipping stakeholders align investment decisions that support the maritime energy transition away from fossil fuels.

The tool, which is presented in a preliminary findings report – The Potential of Ports in Developing Sustainable First Movers Initiatives – scores a port’s potential to produce and bunker electrofuels while delivering local environmental and community benefits in alignment with the global temperature target of 1.5 degrees Celsius set by the Paris Agreement.

“Ports can play an important role in kickstarting shipping’s decarbonisation process even before global policies are established,” said Marie Cabbia Hubatova, Director, Global Shipping at Environmental Defense Fund.

“By considering the impact sustainable first mover initiatives can have on port-side communities, climate, environment and economies, resources can be better directed to locations where these initiatives will make the biggest difference.”

With close to two billion people living near coastal zones globally, the role of, and impacts on local port communities must be intentionally considered as the sector decarbonises globally. Ports can play a crucial role in ensuring shipping decarbonisation efforts are done in a way that has positive impacts on port communities.

The preliminary phase of the Sustainable First Movers Initiative Identification Tool analyses 108 ports in the Indo-Pacific region according to five criteria including land suitability, air quality, renewable energy surplus, economic resilience and ship traffic.

It is also applied to three different port scenarios, including ports exploring fuel production and bunkering, ports exploring fuel exports, and ports exploring fuel imports and bunkering. The combined criteria and scenario evaluation determines which ports have the greatest potential (high potential) for sustainable first mover initiatives to lead to significant emissions reductions and positive impacts in nearby communities, such as improved air quality and economic resilience.

“The transition to clean energy supply for shipping can be achieved only if stakeholders act together. Identifying potential port locations is the first step in this process,” said Dr Carlo Raucci, Consultant at Lloyd’s Register Maritime Decarbonisation Hub. “This approach sets the base for a regional sustainable transition that considers the impacts on port-side communities and the need to avoid regions in the Global South lagging behind.”

Regions in the Global South are fundamental in driving the decarbonisation of shipping. To make this transition effective, the rate at which different countries adopt and scale up electrofuels must be proportional to the difference in capital resources globally to avoid additional costs being passed on to local communities. Sustainable first mover initiatives can play an important role in making this happen by ensuring the sector’s decarbonisation is inclusive of all regions and by engaging all shipping stakeholders, including port-side communities.

“There’s a huge opportunity for early adopter shipping decarbonisation initiatives to unlock benefits for people and planet – shaping the way for a more equitable transition in the 2030s,” said Mark Button, Associate, Arup. “Our collective approach shows that taking a holistic view of shipping traffic, fuel production potential and port communities could help prioritise action at ports with the greatest near-term potential.”

The tool can be customised according to stakeholders’ needs and goals and is dependent on scenario desirability. The next phase of this work will include the selection and detailed assessment of 10 ports to help better understand local needs and maximise the value offered by sustainable first mover initiatives.

LR and EDF carried out a joint study on ammonia as shipping fuel, and LR and Arup have collaborated on The Resilience Shift study focused on fuel demand for early adopters in green corridors, ports, and energy systems, amongst many other projects.

Photo credit: Lloyd’s Register
Published: 29 November, 2023