The Director of Singapore-based energy transportation firm Ocean Tankers (Pte) Ltd (OTPL) on Wednesday (6 May) issued a letter to its creditors and counterparties stating its intention to seek judicial management of the company.
The letter, widely circulated within Singapore’s bunkering sector, was obtained by Manifold Times.
Lim Chee Meng, also known as Evan Lim, stated in the letter OTPL had filed an application in the High Court of Singapore for a moratorium order under Section 211B of the Companies Act, with a view of undertaking a debt restructuring exercise.
“However, OTPL continues to face challenges in continuing its business, even with the protection of a moratorium under Section 211B,” he said.
“OTPL has sought to reassure charterers and other business counterparties that it is a separate entity from Hin Leong Trading (Pte) Ltd (“HLT”) and that it remains committed to continuing its business and performing its contractual obligations.”
To date, the company has received feedback of several parties still having concerns resuming business fully with OTPL due to the negative news reports of HLT and uncertainties relating to renewal of the moratorium under Section 211B, notes Lim.
“OTPL believes that if it is placed under judicial management, the market and OTPL’s business partners are likely to have greater confidence and comfort in continuing business dealings with OTPL,” he explained.
“OTPL therefore has decided to proceed with the proposed debt restructuring exercise under the supervision and control of Court-appointed judicial managers and interim judicial managers and with the protection and assistance of the judicial management regime.”
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Photo credit: Manifold Times
Published: 12 May, 2020
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