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Marine fuel supplier Brightoil Petroleum (Holdings) Ltd has confirmed that a petition for the winding up of the company is to be heard before the High Court of Hong Kong on July 17.

According to Brightoil, the creditor that filed the petition, served on May 17, alleges that it owes $25.7m together with late payment charges and costs said to have arisen from a deed of settlement dated June 1, 2018, and an addendum to the deed of settlement entered into between Brightoil Petroleum, subsidiary Brightoil Singapore and the petitioner.

Singapore winding up applications

Brightoil also noted that over the past nine months, winding up applications had been made in Singapore. In August 2018, a creditor commenced legal proceedings against Brightoil Singapore and Brightoil Petroleum in the High Court of Singapore for sums allegedly due in relation to a trade finance facility. An application for summary judgment was made by the creditor, who has since obtained judgment.

In November 2018, an originating summons was filed by another creditor against Brightoil Singapore in the High Court of Singapore seeking, among other things, a winding up order in relation to a trade invoice and a settlement agreement.

Singapore moratoria

Subsequently, in December 2018, Brightoil Singapore applied for a moratorium under section 211B of the Singapore Companies Act to restrain legal action or proceedings against the firm, and it has also subsequently made an application under section 211C of the Act for a similar moratorium.

There have since been several extensions of the moratoria following the initial applications of Brightoil Singapore and Brightoil Petroleum, and at the last hearing in the High Court of Singapore on May 31, the moratoria were further extended until July 2.

Vessel arrests

Following the arrest of Brightoil's tanker fleet (comprising five VLCCs, four Aframaxes and six bunker vessels), the bunker seller notes that on May 2 it was ordered by the High Court of Hong Kong to sell the VLCC Brightoil Glory, which was sold for $58.8m on May 17 to an unknown buyer.

Last week, on June 4, the VLCC Brightoil Gravity was arrested in Korea and is understood to have been sold for KRW 72.44bn ($61.2m) to an unknown company.

Also on June 4, the Aframax Brightoil Lion and the VLCC Brightoil Grace were sold by closed tender following their arrest in Singapore. The Brightoil Lion was sold for SGD 36.6m ($26.8m) and the Brightoil Grace went for SGD 75.1m ($55.0m).

In total, Brightoil claims the proceeds from the sale of the aforementioned vessels totalled around $201.6m.

Discussing its remaining vessels, Brightoil said: "The Company anticipates that the rest of the tanker fleet of the Group will continue to be disposed with the proceeds to be applied further for satisfaction of the liabilities of the Group."