OFFSHORE and marine firm KS Energy has clarified that a demand from OCBC Bank to the company for a term loan owed by its 80.09 per cent-owned subsidiary KS Drilling is for less than US$230 million, and that the term loan is secured by various assets.
KSDL’s liability under the term loan is secured by securities including mortgages over certain of KSDL's jack-up and land rigs in favour of OCBC, mainboard-listed KS Energy said in a filing to the Singapore Exchange on Monday night. The bridging loan is unsecured. This follows KS Energy's announcement last Wednesday that the bank had sent letters of demand to KS Energy, KSDL and six other subsidiaries of KSDL, seeking repayment of KSDL loans.
KSDL owed the bank a term loan totalling about US$230.7 million and a bridging loan of nearly S$5.2 million, while one of its subsidiaries also owed OCBC a bridging loan of about S$5.2 million. KS Energy on Monday said the demands it received from OCBC are for guarantees it allegedly gave for US$150 million of KSDL’s term loan, and S$5 million for the bridging loan. OCBC demanded payments within seven days and could wind up the company within six months if the payments are not made.
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