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China Aviation Oil (CAO) (Singapore) Corp Ltd, which is on the verge of liquidation, will offer its creditors better repayment terms as they object to its original restructuring plan.
The once-dominant aviation oil importer told Singapore's High Court on Friday that it "intends to present an improved scheme to creditors sometime between the end of April and the middle of May." No further details were disclosed.
The company was attending a hearing after a petition was presented by SK Energy Asia Pte Ltd, one of its 100 creditors, to place CAO under judicial management.
SK Energy drew up the petition last month after it rejected the restructuring plan offered by CAO.
CAO is asking for bankruptcy protection after it squandered US$550 million in oil derivatives trading last year. It is the largest financial scandal to rock Singapore in a decade.
CAO put forward a rescue plan in January to write off 58.5 per cent of its outstanding debt of US$530 million. But most of the firm's creditors objected, claiming the repayment was too small and the pay-back period too long.
CAO would be wiped out, should the plan fail to win votes from half its creditors in June.
A Singapore-based oil broker said it looked like CAO was willing to compromise given the improved debt plan.
(China Daily April 9, 2005)
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