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NewOcean planning creditors meeting, foundation of debt restructuring plan laid out

11 Dec 2020

Hong Kong-listed NewOcean Energy Holdings Limited (NewOcean) on Thursday (10 December) said it is planning a meeting of creditors to discuss, among other things, the refinancing of loans advanced to the Group by banks and financial institutions.

The application for the creditors meeting has already been granted by the High Court of Hong Kong Special Administrative Region on 10 December; the similar application will be heard at the Supreme Court of Bermuda on 11 December.

Once approved, the creditors meeting is scheduled to be held on 18 January 2021.

The creditors meeting is part of active measures to mitigate the liquidity pressure and the financial position of the Group after being adversely affected by the Hin Leong incident, record low oil prices, and Covid-19 pandemic during the first half of 2020, according to the company. 

Events above resulted in six of NewOcean’s principal trade banks withdrawing facilities starting around April 2020; leading to the Group incurring a USD 174 million loss for 1H 2020 and being unable to fulfil certain bank covenants relating to certain bank loans.

To date, NewOcean has entered discussions with banks representing approximately over 58% of its offshore loans to develop the foundation of a debt restructuring plan aiming at a global arrangement between the Group and all its off-shore lenders.

The debt restructuring will be achieved through approval of the scheme(s) of arrangement by the relevant Courts in Hong Kong and Bermuda, or if earlier by all existing off-shore lenders of the Group, it said.

Further details of the development are available from the Hong Kong Stock Exchange announcement here.

Related: NewOcean records USD 174 million 1H 2020 loss; Singapore bunkering business remains
Related: NewOcean Energy publishes profit warning to shareholders ahead of 1H 2020 results


Photo credit:
NewOcean Energy Holdings
Published: 11 December, 2020

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