Asia/Pacific News
GP Global's Singapore Unit Wins Six-Month Debt Moratorium
The Singapore unit of oil trading firm GP Global has won a six-month debt moratorium after a court hearing last week.
Singapore's High Court granted the moratorium to GP Global APAC on Thursday, local newspaper the Straits Times reported on Friday, citing comments from the company's lawyers.
The ruling prevents the firm's creditors from independently seeking to seize its assets to cover its debts to them.
GP Global APAC applied for the moratorium last month. The firm reportedly argued that its creditors may recover just 9% of their losses if the company were forced into a rapid sale of its assets, while they may recover 34-47% if the company's restructuring process were allowed to continue.
GP Global APAC is reported to owe its top 20 creditors more than $464 million.
Parent company GP Global announced a restructuring in July shortly before saying it had uncovered fraud by some of its employees in the UAE, but little further detail has since emerged. The firm's bunker business is at a standstill, and most staff have left for jobs elsewhere.
