AmBank withdraws demand for US$20.48mil from Falcon

SINGAPORE: AmBank has withdrawn a statutory demand, totalling US$20.48m, filed against Singaporelisted Falcon Energy Group.

In an announcement to Singapore Exchange, Falcon said AmBank had also agreed to keep in abeyance until February civil suits against wholly owned subsidiaries Century Marine, Excel Marine and Morrison Marine Services, Bayu Maritim Berkah and the parent. This is to give all parties time to negotiate a final resolution.

Falcon, a provider of oil-and-gas services, is in the process of restructuring its debt.

In December, the company received a qualified opinion from auditor Deloitte & Touche on its financial results, raising concerns over its going concern status.

The company reported net current liabilities of US$116.12mil and incurred loss before tax of US$173.78mil. It also reported a net capital deficiency of US$100.49mil.

The auditors had noted Falcon faced increased liquidity risks on a performance guarantee, deferment of delivery of a rig, the ability to resolve ongoing writ of summons with a secured lender, and to repay or redeem debt when bank borrowings fall due.

Falcon had obtained consent in September from holders of its S$50m (US$38m) 5.5% notes to extend maturity from September 19 2017 to September 15 2020.