Keppel to book impairment loss of $318m in first-half due to KrisEnergy exposure, Companies & Markets News & Top Stories

- Advertisement -
- Advertisement -

[ad_1]

SINGAPORE (THE BUSINESS TIMES) – Keppel Corporation on Tuesday (June 8) said it will recognise a loss of $318 million in respect of its exposure to KrisEnergy in its first-half 2021 financial results, after the latter on June 4 said it has submitted a winding-up petition.

The loss is measured by estimating the recoverable amounts of various assets of the troubled oil and gas group, less its obligations in connection with the revolving credit facility, carrying amounts of investment, contract asset and receivable from KrisEnergy, as well as other costs to realisation of the assets.

Keppel said it benefits from a “comprehensive first ranking security package” over KrisEnergy’s assets. It is implementing detailed recovery plans developed in consultation with its financial adviser and legal adviser to preserve said assets and maximise recoveries.

The group will use the security package to appoint Patrick Bance, Mitchell Mansfield and Kent McParland from Borrelli Walsh as joint and several receivers over the assets of KrisEnergy group members, including KrisEnergy (Asia)’s assets and shares.

Once the receivers have been appointed, they will pursue all necessary action to maximise recoveries for the benefit of Keppel Corp, the group added.

Keppel, which is KrisEnergy’s largest shareholder, said the recoverable amounts will be reassessed at the end of each financial reporting period.

“When considering the declaration of interim and final dividends for the current financial year, the company will take into account, inter alia, available profits and cash flows after ring fencing this impairment loss on this non-core investment,” Keppel added.

Separately, KrisEnergy on Monday said it received notices from DBS and Madison Pacific Trust regarding a revolving credit facility and a Cambodia loan facility respectively.

DBS cancelled the total commitments under the revolving credit facility and declared all loans are now payable on demand. Meanwhile, Madison Pacific notified KrisEnergy of an event of default under the Cambodia loan facility. Keppel’s wholly-owned subsidiary Kepinvest Singapore is the lender.

Both DBS and Madison Pacific have also provided notice that they are entitled to take enforcement action and intend to do so in the future.

In its June 4 announcement, KrisEnergy said it has not been able to propose an alternative restructuring plan to DBS, the provider of a U$200 million revolving credit facility, and Keppel Corporation, which holds the key economic risk in the revolving credit facility. Therefore, the revolving credit facility will not be extended as stipulated conditions have not been fulfilled.

Shares of Keppel Corp closed at $5.35 on Monday, up $0.03 or 0.6 per cent.



[ad_2]

Source link

- Advertisement -
Janice Hillhttps://politicsay.co.uk
Janice founded PoliticSay with an aim to bring relevant and unaltered news to the general public with a specific viewpoint for each story catered by the team. She is a proficient journalist who holds a reputable portfolio with proficiency in content analysis and research. With ample knowledge about the business industry, Janice also contributes her knowledge to the business section of the website. Janice@britmedia360.co.uk
Latest news

How to Watch Manny Pacquiao vs Ugas: Live Stream Boxing Online From Anywhere This Weekend

It’s great news for us that Pacquiao vs Ugas boxing match in jeopardy now that Paradigm Sports Management. Manny Pacquiao, the former eight-division world...
- Advertisement -

Pacquiao vs Ugas: UK fight time, undercard, prediction, ring walks, TV, how to watch, live stream, odds

It’s great news for us that Pacquiao vs Ugas boxing match in jeopardy now that Paradigm Sports Management. Manny Pacquiao, the former eight-division world...

Manny Pacquiao vs Errol Spence Jr Live Stream Reddit

TOP Tonight 9 p.m. ET It’s great news for us that Pacquiao vs. Spence boxing match in jeopardy now that Paradigm Sports Management. Manny...

Colorado Rockies lose series finale to Padres 8-1

Colorado starter Austin Gomber lasted only one inning. He threw 40 pitches and gave up four runs, four hits and two walks. SAN DIEGO —...
Related news

How to Watch Manny Pacquiao vs Ugas: Live Stream Boxing Online From Anywhere This Weekend

It’s great news for us that Pacquiao vs Ugas boxing match in jeopardy now that Paradigm Sports Management. Manny Pacquiao, the former eight-division world...

Pacquiao vs Ugas: UK fight time, undercard, prediction, ring walks, TV, how to watch, live stream, odds

It’s great news for us that Pacquiao vs Ugas boxing match in jeopardy now that Paradigm Sports Management. Manny Pacquiao, the former eight-division world...

Manny Pacquiao vs Errol Spence Jr Live Stream Reddit

TOP Tonight 9 p.m. ET It’s great news for us that Pacquiao vs. Spence boxing match in jeopardy now that Paradigm Sports Management. Manny...

Colorado Rockies lose series finale to Padres 8-1

Colorado starter Austin Gomber lasted only one inning. He threw 40 pitches and gave up four runs, four hits and two walks. SAN DIEGO —...
- Advertisement -