ADVERTISEMENT

Perisai to Earmark $20 Million for Alternative Bond Proposal

Perisai to Earmark $20 Million for Alternative Bond Proposal

(Bloomberg) -- Malaysia’s Perisai Petroleum Teknologi Bhd. will earmark about $20 million out of a financing package it is close to securing and offer it as part of an ”alternative proposal” to investors after failing to reach agreement with them to restructure a bond due Monday.

The sum is part of an ”indicative financing package” the offshore oil rig contractor and its joint venture partner EMAS Offshore Ltd have received from a financial institution, the company said in a filing early Tuesday.

”Part of the amount from the indicative offer would be earmarked towards a mutually acceptable resolution with the company’s noteholders with regards the notes through the availability to the Perisai Group of a sum of approximately $20 million,” Perisai said.

On Monday, Perisai bondholders voted against the company’s proposal to extend the maturity of its S$125 million ($92 million) bond to Feb. 3, 2017.

Perisai Petroleum said it is working with EMAS Offshore ”towards resolving various issues” in order to secure a formal letter of offer from the financial institution. The discussions also include a put option granted by EMAS to Perisai over the latter’s 51 percent stake in their SJR Marine Ltd venture.

EMAS also owns 11.8 percent in Perisai.

To contact the reporter on this story: Sebastian Tong in Singapore at stong41@bloomberg.net. To contact the editor responsible for this story: Niluksi Koswanage at nkoswanage@bloomberg.net.