Norway-based owner of liquefied natural gas (LNG) carriers IM Skaugen has filed for restructuring in Singapore seeking court protection from its creditors.
"We wish to announce that I.M. Skaugen SE (IMSSE), together with its wholly owned subsidiaries, SMIPL and IMSPL filed applications to the High Court of the Republic of Singapore on 31 May 2018 for a moratorium to commence the reorganisation of liabilities and businesses of the IMS Scheme Companies," said a press release from the company.
With the filing of the Scheme Moratorium, the IMS Scheme Companies automatically qualify for protection from the Singapore Court
under a 30-day moratorium that will apply against creditors' claims. In the weeks to come, the IMS Scheme Companies will seek approval from the Singapore Court to extend the moratorium.
The moratorium will provide much-needed space and time for the IMS Scheme Companies to complete their business transformation from seaborne transportation
of LPG/Petrochemicals to regional distribution of LNG through its unique fast-track, low capex Small Scale LNG concepts; target areas for growth and pursue new business opportunities; and focus on the ongoing discussions with strategic investors.
IMS presented a restructuring plan on 4 April 2018 which had the support from most of its stakeholders. IMS is now seeking the assistance of the Singapore courts to complete this plan. The restructuring plan, if implemented, is in line with IMS' wishes to be in a position to be able to pay its liabilities in full with its upcoming cash flow matching an amended amortisation schedule of its liabilities. To achieve this, IMS will need the assistance of the Singapore Court through the scheme of arrangement process.
IMS Scheme Companies will subsequently file applications in the Singapore Court to commence a scheme of arrangement to reorganise the liabilities and businesses of the IMS Group.