Perisai Bonds on shaky ground - Ezra may be in possible jeopardy if firm fails to redeem its bonds

Source: Straits Times 30 Sep 2016


A second Singapore-dollar bond default from the hard-hit oil and gas industry could be on the cards.

Perisai Petroleum Technologi, a company listed on KLSE, and its bond holders are struggling to agree on $125 million worth of notes due to mature on next Monday.

Ezra Holdings, with a 22.5 per cent stake in Perisai via two units, could find itself in jeopardy too should the firm fail to redeem its bonds.   The two firms are linked through a US$43 million (S$59 million) put option.

Perisai is seeking note holders' agreement to waive the payment of note principal and interest due on 3 Oct 2016 and also wants to postpone the maturity date by four months to 3 Feb 2017.   Perisai is operating "under extremely tight financial conditions" as business has been hurt by weak crude prices and slow economic growth.

(For full article and details - see Page C1 of Straits Times).

http://www.straitstimes.com/business/companies-markets/perisai-bonds-on-shaky-ground

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