Brightoil Has ‘Healthy’ Cash Available After Loan-Term BreachWinnie Zhu
Brightoil Petroleum Holdings Ltd., Singapore’s third-largest supplier of marine fuel, said it has a “healthy” amount of cash available, and operations haven’t been affected by a breach of its loan agreement.
The company is applying for waivers with its banks to prevent possible default on loans, Ella Mak, a Hong Kong-based spokeswoman, said by telephone today.
Brightoil has breached the interest-coverage ratio covenant on at least one loan relating to vessel financing, the company said in a statement on Jan. 16. It also expects to have a “material loss” in the six months ended Dec. 31, compared with a profit in the same period a year earlier, because of depressed market conditions in the shipping industry and falling margins for marine oil, known as bunker, according to the statement.
Brightoil was the third-largest bunker supplier last year in Singapore, the world’s largest bunkering port, according to the city state’s Maritime and Port Authority.