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Latest Singapore Restructuring Shows Oil Distress Far From Over

Singapore’s oil industry’s fallout cases highlight the enduring pain from crude’s last year slump.

Latest Singapore Restructuring Shows Oil Distress Far From Over
A worker presses a valve that releases oil from a pipe into a bucket at an oil field (Photographer: Taylor Weidman/Bloomberg)

(Bloomberg) -- The price of crude may have stabilized, but the same can’t be said for the industries in Singapore whose fortunes depend on oil.

Nam Cheong Ltd. said on Monday it filed an application on Oct. 6 for a moratorium on its $424 million of debt, just a week after Ezion Holdings Ltd. sought to restructure its $2 billion of debt. The two cases highlight enduring pain from the slump that took crude close to $25 a barrel last year.

The fallout has been concentrated in Singapore, an energy industry hub. There have been more than S$1.4 billion ($1 billion) of local bond defaults since late 2015, largely by companies providing offshore vessel services to major oil explorers, Bloomberg data shows. Commodity trader Noble Group has also sold assets and obtained waivers from lenders to ease a cash crunch.

Here are some of the major ongoing debt restructuring cases of Singapore-based companies, involving both local and dollar-based bonds:

  • Nam Cheong
    • Nam Cheong to Reorganize $424m Debt Via Asset Sales, Equity Swap
    • Nam Cheong Commences Restructuring in Singapore, Malaysia
  • Ezion
    • Ezion Seeks Bank Funding, Bond Restructuring in Survival Bid
    • Ezion Signs Confidential Pacts With Committees on Debt Talks
  • China Fishery/Pacific Andes Resources
    • China Fishery Seeks $255m Cash Injection in Chapter 11 Exit Plan
    • China Fishery Peru Auction to Proceed, Court Hearing on Dec. 20
  • Global A&T Electronics
    • Global A&T Bonds Near 2-Yr High as Debt Plan Splits Hedge Funds
    • Global A&T Offers New Debt Proposal Plan; Hedge Fund Opposes
  • Noble Group

To contact the reporter on this story: David Yong in Singapore at dyong@bloomberg.net.

To contact the editor responsible for this story: Neha D'silva at ndsilva1@bloomberg.net.