An SK Innovation led-petrochemical complex in Singapore has gone into creditor receivership after struggling with debt problems, it was confirmed Friday.
This is a step before bankruptcy. But should the project fail to achieve profitability, it could face a court order to shut down, industry insiders said.
According to SK and news reports, restructuring specialist Borrelli Walsh has been appointed as a receiver and manager overlooking the possible bankruptcy of Jurong Aromatic Corp. in Singapore. SK Innovation, SK E&C and SK Gas are the largest shareholders in the complex with a combined 30 percent stake in the $2.44 billion complex since 2011.
JAC is one of the world’s largest aromatic chemicals complexes, having processed 100,000 barrels of condensate splitter a day until last year. However, its profitability has slid as falling oil prices reduced the price of condensates, as well as benzene and other products.