Singapore bunker supplier Panoil Petroleum, which had its licence revoked, and its associated companies, have been placed under judicial management.
Receive daily email alerts, subscriber notes & personalize your experience.Register Now
The company placed six notices in The Business Times Friday, each for Panoil Petroleum Pte Ltd, Panoil Tankers Pte Ltd, Panoil Shipping Pte Ltd, Panoil Marine Pte Ltd, Pan Energy Pte Ltd, and Panoil Logistics Pte Ltd.
The notices state that the companies were placed under judicial management on October 2.
When contacted, Steven Lam, an independent director of Panoil Petroleum and Panoil Tankers said: "It was the best way to protect the company. We can continue to trade, and have better realization of our assets."
Lawyers S&P Global Platts spoke to said placing a company under judicial management would give it respite from creditors.
"One of the key objectives is to preserve the company's assets, which would serve its creditors better, as opposed to the company winding up," said lawyer and director of MG/Chambers LLC Mark Goh.
"A judicial manager will try to re-organize the company so that it can continue operating."
Shipping databases showed that Panoil Petroleum is the group owner of nine vessels: the Ophelia, Oprah, Quinta, Royalty, Supernova, Unika, Estrella, Jazeel and the Colossus.
It also has S$2.25 million ($1.64 million) and $3.29 million in paid-up capital.
The Maritime and Port Authority of Singapore did not renew Panoil Petroleum's bunker supplier license when it expired on August 31.
Panoil Petroleum made unauthorized alterations on the pipelines of its bunker tankers and had accumulated demerit points for non-compliance with bunkering procedures, the MPA said in a statement.
It also revoked Panoil's bunker craft operator licence on August 14, which meant the company could no longer carry out bunker deliveries in the port of Singapore.
Panoil Petroleum was Singapore's 10th biggest bunker fuel supplier by volume in 2016.