The Singapore High Court is to hear tomorrow (6 October) Glencore’s application to have Jurong Aromatics Corp (JAC) wound up, the court’s website shows.
The open-court hearing is scheduled for 10am, the website shows.
Glencore Singapore Pte, represented by BlackOak, filed the winding-up application on 28 August — a day after ExxonMobil Chemical Co announced that its Singapore affiliate had completed its acquisition of JAC’s aromatics facilities on Jurong Island.
BNP Paribas, the inter-creditor agent and security Agent for JAC’s USD 488m senior secured syndicated loan, is to appear at tomorrow’s hearing as is Borrelli Walsh, the receiver over JAC. Allen & Gledhill represents both Borrelli Walsh and BNP. The court website shows JAC as “unrepresented.”
As reported, the senior secured lenders on 28 September 2015 appointed Borrelli Walsh as receiver over the Singapore petrochemicals company.
The case involves what Glencore claims is its right to offset what it is owed by JAC against the amount it and BP owe the company under a tolling arrangement.
Before receivership, most of JAC’s equity sponsors — led by MY Ling (also known as Hadiran Sridjaja), one of its founders — had agreed to a restructuring proposal that would involve BP, Glencore and Korea’s SK Corp converting approximately USD 450m in unsecured claims into a slightly-more-than 75% stake in the company to take over management while supplying JAC with feedstock in a tolling arrangement, as Debtwire reported.
However, the talks between the three suppliers and offtakers faltered over the senior, secured banks’ demands that SK Corp, Glencore and BP also provide working capital lines to the company and furnish evidence that they would be able to recapitalise JAC through a USD 300m rights issue.
In addition to being suppliers and offtakers to JAC, SK Corp and Glencore held 30% and 10% stakes in the company, respectively. BP, through the UK oil major’s subsidiary BP International Ltd, held USD 160m of JAC’s USD 260m second-lien facility, as reported.
As reported, the Singapore petrochemical company’s restructuring of its USD 1.816bn financial debt and more than USD 625m in unsecured debt began in January 2015 after production at its USD 2.4bn greenfield project was put on hold only five months after operations started.