Norway-based owner of liquefied natural gas (LNG) carriers I.M. Skaugen SE has filed applications to the High Court of the Republic of Singapore for a moratorium to commence the reorganization of liabilities and businesses.
The moratorium paves the way for court protection of IMS scheme companies against creditors’ claims for one month, which the company will seek to extend.
As explained, the moratorium will provide much-needed space and time for the IMS to complete their business transformation from seaborne transportation of LPG and petrochemicals to regional distribution of LNG through its small scale LNG concepts.
In addition, it will provide the company some breathing time to focus on the ongoing discussions with strategic investors.
IMS presented a restructuring plan in April 2018 which was backed by most of its stakeholders. Now the company needs the assistance from the Singapore courts to implement the plan and pay its liabilities in full with its upcoming cash flow matching an amended amortisation schedule of its liabilities.
IMS added that it plans to apply for a scheme of arrangement to reorganise the liabilities and businesses of the IMS Group with the Singapore court.
“We are confident that the process will lead to a reinvigoration of the IMS Group and it will assist us to generate significant cash flow for the benefit of all stakeholders,” the company said.
In the meantime, the IMS Group said it would continue to pursue small scale LNG opportunities, via Norgas Carriers AS, Norgas Carriers Pte Ltd, and Somargas II Pte Ltd, which the IMS Group has kept outside of the restructuring process.