Singapore court grants oil trader GP Global APAC debt moratorium

Global Mastermind Holdings

04/03/2021 08:07

By Roslan Khasawneh
    SINGAPORE, March 4 (Reuters) - The Singapore High Court on
Tuesday granted oil trader GP Global APAC Pte Ltd a six-month
debt moratorium, the company's lawyers said on Thursday, paving
the way for its parent company to restructure more than $1
billion in debt.
    GP APAC is the Singapore unit of GP Global, a global oil
trader and ship fuel supplier based in the United Arab Emirates
that is in default amid allegations that employers carried out
fraudulent trades. The moratorium will keep GP APAC's creditors
from independently pursuing legal actions and allow it to resume
restructuring efforts, including selling off GP Global's oil
refining and storage assets. 
    The Singapore unit owes more than $464 million to its top 20
unsecured creditors while its parent had total liabilities of
more than $1.2 billion.  urn:newsml:reuters.com:*:nL4N2KB1HI
    GP APAC applied in early February for the moratorium after
Singapore-based marine fuel supplier Equatorial Marine Fuel
Management Services Pte Ltd obtained a court ruling allowing it
to seize GP's Singapore office to recoup more than $700,000 in
claims.
    In Tuesday's hearing the High Court also granted an order
that would prevent the seizure, Daniel Tan and Moses Lin, GP
APAC's legal advisers and partners at law firm Shook Lin & Bok
LLP, told Reuters.  
    "This is all GP APAC wanted, a restructuring where everyone
is treated equally and there is no 'queue jumping'," said Lin.
    GP APAC had planned to sell the office to raise S$8.5
million ($6.4 million) as part of its restructuring plan.
    We "can proceed to complete the sale of the property to the
awaiting buyer," said Tan.
    Under the court order, about S$1 million ($752,000) from the
sale of the property would be paid to the court for distribution
to creditors when the company's restructuring scheme is
approved, the lawyers said.
    "If the scheme is not approved and the moratorium is lifted,
then this money may be paid out to Equatorial in accordance with
the judgment they have obtained," said Lin.
    GP APAC's director Roderick Sutton and Equatorial did not
respond to requests for comment.    
        
($1=S$1.33)    

 (Reporting by Roslan Khasawneh; Editing by Christian
Schmollinger)
 ((roslan.khasawneh@thomsonreuters.com; Reuters Messaging:
roslan.khasawneh.thomsonreuters.com@reuters.net))