Singapore-based tanker owner Xihe Group and its lenders have adjourned court proceedings to work together towards a “consensual restructuring,” the company said in a press release dated July 29.
Xihe said that, with the proceedings adjourned to August 13, it is “deeply grateful” to its lenders and to the Singapore High Court for the opportunity to reorganise and thus ensure “the best outcome for all its stakeholders, partners, and clients.”
Oversea-Chinese Banking Corporation (OCBC), one of Xihe’s lenders, had earlier filed an affidavit with the Singapore High Court requesting that Xihe be placed under judicial management to allow the investigation into irregularities that had supposedly occurred under the current management, which then led to mounting debts being incurred over time.
Kenny Lim Oon Cheng, interim CEO of Xihe Holdings, said that the granting of OCBC’s request would have constituted a “destruction of value” for shareholders and “disrupt the constructive discussions that the Xihe Group has had with third parties including lenders.”
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