H-Energy’s Ex-Dubai-Based LNG Trading Arm Being Liquidated
(Bloomberg) -- A liquefied natural gas trading company that was until recently based in Dubai and part of India’s Hiranandani Group is being liquidated, according to a letter to creditors seen by Bloomberg News.
HE Mideast Ltd. had insufficient funds to meet its debts, according to the letter, dated April 1, seen by Bloomberg. The firm defaulted on at least $50 million worth of debt to LNG suppliers including Malaysia’s Petroliam Nasional Bhd and Royal Dutch Shell Plc, said people with knowledge of the matter.
The company took speculative positions on physical and paper LNG trades over the last few years, which strapped them with debt they were unable to repay, said the people, who requested anonymity as the matter is private.
Novato Investing Ltd., current owner of HE Mideast, declined to comment on any liquidation. Shell declined to comment, and Petronas didn’t respond to a request to comment. Petronas signed a supply deal with the company in 2018. Shell and Petronas declined to comment.
Novato has appointed FTI Consulting as liquidator for HE Mideast, and will hold its first meeting with creditors on April 20, according to the letter to creditors. FTI declined to comment.
HE Mideast changed its name from H-Energy Mideast DMCC in July 2020, and was established as a Dubai-based trading firm by H-Energy Global Ltd. in 2014, according to a certificate of name change and trading license seen by Bloomberg News. The company recently had ownership transferred to Novato Investing Ltd. and was re-domiciled to the British Virgin Islands, the people said.
H-Energy Global, a member of India’s Hiranandani Group, is a smaller, new entrant in the LNG space.
©2021 Bloomberg L.P.