Brightoil Has ‘Healthy’ Cash Available After Loan-Term Breach

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.

Before it's here, it's on the Bloomberg Terminal.
LEARN MORE