Peri­sai shares nose­dive on bond­hold­ers’ re­jec­tion of ma­tu­rity date ex­ten­sion

The Sun (Malaysia) - - MEDIA & MARKETING -

PE­TAL­ING JAYA: Peri­sai Petroleum Te­knologi Bhd’s shares nose­dived as much as 32% yes­ter­day, as its bond­hold­ers re­jected the ex­ten­sion of the ma­tu­rity date for its S$125 mil­lion (RM377.3 mil­lion) bonds.

In a fil­ing with Bursa Malaysia yes­ter­day, Peri­sai said the trustee of the bonds has found it to be in de­fault by virtue of the min­i­mum cov­er­age ra­tio covenant fall­ing be­low the req­ui­site ra­tio of 3.0 : 1 in re­spect of the pe­riod ended June 30 2016.

The com­pany added, how­ever, that the trustee does not in­tend to take any fur­ther ac­tion to de­clare the notes to be due and re­payable un­less di­rected by note­hold­ers.

It was re­ported that 70% of Peri­sai bond­hold­ers voted against the waiver on pay­ments and other obli­ga­tions at the com­pany’s bond­hold­ers meet­ing.

This news sent Peri­sai’s share price down by 3.5 sen or 28% to close at 90 sen, with some 71.9 mil­lion shares chang­ing hands, be­ing the sec­ond most traded stock of the day.

The S$125 mil­lion bonds car­ry­ing a coupon rate of 6.875% were due on Mon­day. The is­sue is part of the com­pany’s S$700 mil­lion mul­ti­c­ur­rency medium-term notes pro­gramme.

Peri­sai had sought an ex­ten­sion un­til Feb 3, 2017 from Oct 3, 2016, ac­cord­ing to its con­sent solic­i­ta­tion note dated Sept 9.

Nonethe­less, Peri­sai said it, to­gether with its joint ven­ture part­ner Emas Off­shore Ltd (EOL), had on Sept 30 re­ceived an in­dica­tive offer of fi­nanc­ing from a fi­nan­cial in­sti­tu­tion.

“Part of the amount from the in­dica­tive offer would be ear­marked to­wards a mu­tu­ally ac­cept­able res­o­lu­tion with the com­pany’s note­hold­ers with re­gard the notes through the avail­abil­ity to the Peri­sai group of a sum of ap­prox­i­mately US$20 mil­lion,” the com­pany said, stress­ing that it is on the ba­sis that it in­tends to en­gage with the note­hold­ers to come up with an al­ter­na­tive pro­posal.

Peri­sai and EOL are in dis­cus­sions with the fi­nan­cial in­sti­tu­tion to pro­cure a for­mal let­ter of offer sub­ject to sat­is­fac­tion of cer­tain con­di­tions.

As part of the in­dica­tive fi­nanc­ing pack­age, Peri­sai is also in talks with EOL to re­solve var­i­ous is­sues among them­selves, in­clud­ing a put op­tion that was granted by EOL to Peri­sai for Peri­sai’s 51% share­hold­ing in SJR Ma­rine (L) Ltd.

Peri­sai and EOL are joint-ven­ture part­ners in Emas Vic­to­ria (L) Bhd and SJR, the owner of the float­ing, pro­duc­tion, stor­age and of­fload­ing ves­sel Peri­sai Kamelia and the off­shore con­struc­tion ves­sel En­ter­prise 3 re­spec­tively.

As at June 30, Peri­sai’s cash and cash equiv­a­lents stood at RM16.93 mil­lion ver­sus short-term bor­row­ings of RM475.38 mil­lion.

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