KrisEnergy looking to increase credit facility
- Business & Finance
Singapore’s independent oil and gas company KrisEnergy is working to increase its revolving credit facility amid going concern doubts expressed by an independent auditor.
In a statement on Thursday KrisEnergy said it had entered into an amendment agreement for the existing $148.3 million revolving credit facility with DBS Bank Ltd. (as lender), KrisEnergy (Asia) Ltd (KEAL) (as borrower) and the company (as one of the guarantors); and the additional commitment of $20 million provided by DBS under the facility. DBS is the sole arranger of the facility.
The April 2019 amendment agreement will, among other things, allow the facility to be increased by an amount which would not result in the total commitments exceeding $200 million, pursuant to the group’s request for DBS to provide additional funding of $31.7 million as previously announced by KrisEnergy on Tuesday, April 2, 2019.
KrisEnergy noted that the additional commitment is subject to, inter alia, satisfaction of various conditions precedent, and there is no certainty that all of the conditions precedent will be satisfied or waived, as the case may be.
The terms of the April 2019 amendment agreement also require some members of the group to provide additional undertakings, and provides for additional circumstances under which an event of default can occur.
Accordingly, shareholders of the company are advised to exercise caution when dealing in the securities of the company and should consult their stockbrokers, bank managers, solicitors, accountants or other professional advisors.
It is worth mentioning that KrisEnergy’s independent auditor, Deloitte & Touche recently said that KrisEnergy had recorded losses of $137.4 million for the year ended December 31, 2018, which resulted in Total equity reducing to $22.7 million as at December 31, 2018.
The auditor indicated that “a material uncertainty exists that may cast significant doubt on the group’s and the company’s ability to continue as a going concern.”
The auditor also added: “Our opinion is not modified in respect of this matter and our opinion remains unqualified.”
Spotted a typo? Have something more to add to the story? Maybe a nice photo? Contact our editorial team via email.
Offshore Energy Today, established in 2010, is read by over 10,000 industry professionals daily. We had nearly 9 million page views in 2018, with 2.4 million new users. This makes us one of the world’s most attractive online platforms in the space of offshore oil and gas and allows our partners to get maximum exposure for their online campaigns.
If you’re interested in showcasing your company, product or technology on Offshore Energy Today contact our marketing manager Mirza Duran for advertising options.