Perisai Bondholders Reject Oil Rig Contractor’s Proposal

  • Perisai had proposed to extend maturity on bond due Monday
  • Company discussions with bond investors collapsed last week

Perisai Petroleum Teknologi Bhd., a Malaysian offshore oil rig contractor, failed to convince a group of bond investors to agree to its debt restructuring plan.

More than 70 percent of investors who voted on Monday rejected the company’s proposal to extend the maturity of the bond to Feb. 3, 2017, according to Cheng Fong Kiew, a bondholder present at the meeting.

Over 20 bondholders gathered at the basement of an office tower in Singapore’s central business district to vote on the plan to prolong maturity of its S$125 million ($91.6 million), 6.875 percent bond due today. Bond investors last week demanded immediate repayment after talks with the company collapsed.

“Yes, it’s our responsibility that we bought the bonds but the company can’t just brush us aside,” said Cheng, who owns S$500,000 of Perisai bonds. “Trust has been eroded.”

Southeast Asia’s oil and gas industry is being hobbled by a decline in crude prices and slowing global economic growth. Swiber Holdings Ltd. roiled the market when it defaulted on S$460 million of local-currency notes, while shippers including Rickmers Maritime are seeking to reorganize debts.

Perisai’s head of corporate planning Lai Swee Sim, who represented the company at today’s meeting, declined to comment. The notes were last quoted at 55 Singapore cents on the dollar, according to DBS Bank Ltd. prices.

Shares in Perisai have dropped 24 percent in Sept., outstripping the broader KLCI market that has declined 1.5 percent.

(Adds Perisai share price move in paragraph 7. Earlier version of story was corrected to reflect right currency conversion.)
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