The High Court in April ordered the company to wind up after multiple failed restructuring attempts
OFFSHORE and marine player Falcon Energy will delist from the Singapore Exchange (SGX) on Nov 15.
This comes after the company was ordered by the High Court in April this year to wind up after multiple failed restructuring attempts. Shares of Falcon Energy have been suspended from trading since January 2019.
In September, the company’s liquidators filed an application with the SGX to delist Falcon Energy from the bourse’s mainboard.
To recap, AmBank, one of the company’s principal lenders, filed a winding-up order against Falcon Energy in 2021.
Since then, both parties have fought it out in court, with Falcon Energy requesting more time to restructure, and AmBank putting pressure on it to either repay its debts to its creditors or wind up.
The High Court subsequently ordered Falcon Energy to wind up, after the company allowed the moratorium previously granted by the court to lapse.
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One of the company’s directors had asked the court for the moratorium to be extended by two more months.
The request came as the company was facing difficulties in preparing the intended scheme of arrangement to be proposed to creditors, as well as definitive agreements for its proposed private placements, due to “cash-flow constraints”.
Falcon Energy had reportedly tried to restructure itself three times.
In its last financial report, its net loss amounted to US$8.9 million for the financial year 2020. Its liabilities stood at US$237.2 million as at FY2020.
At that time, the company highlighted that its focus was to work with its independent financial adviser to file a third attempt of scheme of arrangement. The success of the scheme of arrangement was crucial to release Falcon Energy from its heavy liabilities, added the company.
