China Aviation Oil (Singapore) approved for restructuring
(Xinhua)
Updated: 2006-03-04 11:00

China Aviation Oil (Singapore) (CAO) received the approval it was seeking from shareholders on its restructuring plan, China Aviation Oil Holding Company (CAOHC) announced here Friday.

Shares of CAO will resume trading in Singapore at the end of March, said CAOHC.

The meeting approved the plan which includes a 130 million US dollars investment, the subscription of shares for creditors and the appointment of eight directors to the board of CAO.

The investment of 130 million US dollars will come from CAOHC, BP Investment Asia Ltd. and Aranda Investments Private Ltd., an indirect wholly-owned subsidiary of Temasek Holdings (Private) Limited Holdings, according to CAOHC.

Under the agreements signed by the four parts in last December, CAOHC will inject 75.77 million US dollars, BP, 44 million US dollars and Aranda, 10.23 US million dollars, into CAO.

CAOHC, inclusive of its current shareholding, will end up with a majority stake of 51 percent post-structuring; BP a 20 percent stake; and Aranda, 4.65 percent stake.

This total investment of 130 million US dollars amounts to approximately 59.1 percent of the enlarged share capital of CAO Singapore, following the completion of its restructuring plan.

Creditors will also inject 22 million US dollars for shares representing approximately 10 percent of the enlarged share capital of the company's post-restructuring, with small shareholders holding 14.47 percent.

After getting approval from shareholders, the restructuring plan will be submitted to the Supreme Court of Singapore for approval, said CAOHC.

Jia Changbin, chairman of CAO, said that giving approval for the restructuring plan of CAO signifies the confidence of investors in the future of CAO.

In the future, CAOHC will continue its supports of CAO, helping it to restore value for shareholders as soon as possible, said Jia.

Based in Singapore, CAO sought court protection from creditors after revealing in November 2004 it had lost 550 million US dollars in derivatives trading.

The company got approval from shareholders for its debt restructuring plan in June 2005 and got 130 million US dollars for restructuring in December 2005.

CAOHC, China's major aviation oil supplier, said its major business covers such sectors as storage and wholesale, retail trade and transportation of aviation fuel and other oil products; the import and export of aviation fuel, and other activities related to the aviation fuel business including fuel supply equipment operations, engineering design, inspection and management and technical services.