Singapore's Jurong Aromatics goes into receivership on debt woes
SINGAPORE, Sept 30
Jurong Aromatics Corp (JAC), which operates a large petrochemicals complex in Singapore, has gone into receivership after debt problems, according to its restructuring firm and a filing with Singapore's accounting authority.
JAC's debt problems mounted in recent months after it halted production in December to fix a technical issue amid a collapse in the price of oil and related products.
Specialist restructuring firm Borrelli Walsh said in a letter to JAC's creditors that two of its executives were appointed as receivers and managers of JAC this week by BNP Paribas. BNP Paribas is of the lenders to the company and the security agent for its assets.
JAC declined to comment.
Receivership is a type of corporate bankruptcy in which a receiver is appointed by bankruptcy courts or creditors to run the company.
The complex is one of the world's largest integrated aromatics plants. It operated a 100,000 barrels per day (bpd) condensate splitter, but since late last year those operations have been stalled.
South Korean conglomerate SK Group owns 30 per cent of the company and Chinese polyester maker Jiangsu Sanfangxiang Group owns 25 per cent. Glencore also has a 10 percent stake in the firm. (Reporting by Saeed Azhar; Additional reporting by Florence Tan and Rujun Shen; Editing by Edwina Gibbs)
SINGAPORE, Sept 30
Jurong Aromatics Corp (JAC), which operates a large petrochemicals complex in Singapore, has gone into receivership after debt problems, according to its restructuring firm and a filing with Singapore's accounting authority.
JAC's debt problems mounted in recent months after it halted production in December to fix a technical issue amid a collapse in the price of oil and related products.
Specialist restructuring firm Borrelli Walsh said in a letter to JAC's creditors that two of its executives were appointed as receivers and managers of JAC this week by BNP Paribas. BNP Paribas is of the lenders to the company and the security agent for its assets.
JAC declined to comment.
Receivership is a type of corporate bankruptcy in which a receiver is appointed by bankruptcy courts or creditors to run the company.
The complex is one of the world's largest integrated aromatics plants. It operated a 100,000 barrels per day (bpd) condensate splitter, but since late last year those operations have been stalled.
South Korean conglomerate SK Group owns 30 per cent of the company and Chinese polyester maker Jiangsu Sanfangxiang Group owns 25 per cent. Glencore also has a 10 percent stake in the firm. (Reporting by Saeed Azhar; Additional reporting by Florence Tan and Rujun Shen; Editing by Edwina Gibbs)
