Another Chinese private oil giant faces liquidation if court approves winding-up petition
- Court hearing will be held on March 6 to review petition filed against Brightoil
- The company’s financial health has been shaky since 2016
Another mainland Chinese private oil giant has run into financial trouble.
Brightoil Petroleum, an oil trader turned energy operator, is facing a winding-up petition for its Hong Kong-listed entity, a court filing shows.
This is the latest development in the company’s worsening financial health after it delayed the release of its 2016 financial results – resulting in its shares being suspended from trading on October 3. The company has yet to say when it will release financial statements for 2016 and 2017.
If a winding-up petition is approved by court, all the company’s assets will be sold off and converted into cash in order to repay its debts. A creditor, a shareholder or the firm itself can file a winding-up petition against the company, according to local rules.
A court hearing will be held on March 6, after the petition was submitted by Broad Action, a company whose relationship with Brightoil remains unclear.
Brightoil has not put up a filing about the petition to the Hong Kong stock exchange, even though local rules require immediate disclosure, according to lawyers.