KS Energy's judicial managers receive approval to wind up KS Drilling

THE judicial managers (JMs) of KS Energy have received approval from creditors to take the necessary steps to dispose of the assets of KS Drilling, as well as to discharge themselves and wind up KS Drilling after the satisfactory disposal of its assets, the company said in a bourse filing on Tuesday.

The JMs will also be allowed to consider any reasonable proposal from potential investors keen to list on the Singapore Exchange Securities Trading Limited (SGX-ST) by way of a proposed acquisition, transfer of the listing status of the company, or any related transactions.

Additionally, they also received approval to seek a further extension of the judicial-management order for the purpose of the proposed transaction and to seek for an extension of time from SGX-ST to submit a resumption proposal.

In the event that the time extension is not granted or a transaction cannot be arranged, the JMs will then have to take the necessary steps to discharge themselves and wind up the company, and form a committee of creditors.

The approvals come following a creditors' meeting of the company and KS Drilling held on Jan 27.

KS Energy and its key operating subsidiary, KS Drilling, were placed under JM last October, after OCBC in August filed applications with the Singapore High Court to place the two under JM. This came after the bank sent letters of demand to KS Energy, KS Drilling and six other subsidiaries for a US$230.7 million secured-term loan and a S$5 million unsecured bridging loan, both owed by KS Drilling.

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"The JMs will provide further updates on material developments as and when is appropriate," said JMs Andrew Grimmett and Lim Loo Khoon in the statement.