Petrolimex Singapore Pte Ltd (Petrolimex), the subsidiary of Vietnam National Petroleum Group, is allegedly owed over USD $30 million by Singapore bunker supplier Brightoil Petroleum (S'pore) Pte Ltd (Brightoil), learns Manifold Times.
Petrolimex initiated a winding up application for Brightoil at the Singapore High Court on Friday (23 November).
The application was in regards to a settlement agreement of a principle sum of over $30 million issued on 12 July, Chew Xiang, Partner at Rajah & Tann Singapore LLP, representing Petrolimex told the court.
Brightoil failed the initial repayment on 10 August, which caused Petrolimex to issue a statutory demand for monies owed on 30 August; following, Brightoil on two separate occasions paid $30,000 and another $50,000 to Petrolimex.
“The sum was a drop on the ocean […] the company is hopelessly insolvent,” he claims, which led Petrolimex to file a winding up application against Brightoil.
In response, Blossom Hing, Director of Drew & Napier LLC, representing Brightoil said the company is seeking adjournment of the winding up application over four reasons.
She pointed to an announcement made by Brightoil Petroleum Holdings Limited, the parent company of Brightoil at Singapore, on Wednesday (21 November) suggesting the return of its VLCC fleet into the shipping market as part of efforts to generate revenue.
Hing also highlighted Brightoil Petroleum Holdings Limited working with a lead bank under the overall guidance and coordination led by the People's Bank of China to formulate a package for financing and debt optimisation adjustment plans.
"What this means is there is some kind of debt restructuring starting at the top and we will need time to work with the lead bank in China as well as the People's Bank of China to see how the reorganisation will work out," she told the court.
Brightoil is also considering court assisted restructuring at the Singapore court.
"The final reason is there is announcement where there is a serious effort on the ground [for reorganisation] which can benefit parties if the effort is successful."
Justice Hoo Sheau Peng decided to offer a three-week adjournment for the case to be heard on 14 December.
Related: Brightoil bunker tanker fleet placed under Sheriff’s arrest
Related: Brightoil signals return to the shipping sector, starts reorganisation of debt
Related: Petrolimex in winding up application against Brightoil at Singapore High Court
Photo credit: Manifold Times
Published: 26 November, 2018
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