Singapore-listed oil and gas company Linc Energy Ltd. entered into voluntary administration on April 15, suffering from debt woes amid a slump in energy prices, it said in a statement to the Singapore Exchange.
The company said it had appointed Stephen Longley, Grant Sparks and Martin Ford of PPB Advisory as administrators. Linc Energy's businesses include oil and gas operations in the U.S. and exploration for shale oil and gas in south Australia.
And while oil prices have recovered somewhat this year, benchmark Brent futures are still down more than 60% from peaks hit in mid-2014.
The company, which shifted its listing to Singapore from Australia in end-2013, had cash and equivalents of AU$4.7 million (US$3.6 million) at the end of last year, while its borrowings stood at AU$726.4 million, slightly higher than its total assets.
"The administrators are working with the company's management team to fully understand the options available ... which may potentially include a restructure of the company at an appropriate time," Linc said in a statement to the exchange.
Several Australian resource and materials companies have recently entered into voluntary administration, stung by a ramp up in output just as China's economy started to slow and commodity prices plunged.
Data compiled by Reuters show at least 10 Australian companies in the materials sector hold debt 3x their EBITDA in 2015.
Shares in Linc had been suspended since the end of March. The shares, which have a market value of $11.6 million, had fallen about 85% so far this year.
PPB Advisory said it was focused on working with Linc's management to review the company's operations and assets in Australia and the U.S. It said Linc Energy will continue on a business-as-usual basis during the review.
When reporting its results in February, the company had said its operating cash flows indicated that it might not have sufficient working capital to cover interest payments due in the next 12 months.
The company's largest shareholders include Peter Bond, its former CEO, and Malaysian conglomerate Genting Bhd's investment arm, according to Linc's 2015 annual report.
(US$1 = 1.2965 Australian dollars)
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