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피터빈트

SK-led petrochemical plant in Singapore may face bankruptcy

By KH디지털2

Published : Oct. 2, 2015 - 17:57

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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. 

Jurong Aromatic Corp. Jurong Aromatic Corp.


The complex has since then sought to restructure the plant into using other materials but has yet to see any improvement in the business. JAC has reportedly failed to pay interest to the creditors for a while.

“The ailing oil price and the global economic slowdown may have affected the business. But we are still waiting to see what happens because we are still studying and investigating the reasons for the stale business and solutions to them,” an SK spokesman said.

SK also explained that it had acquired its stake through a private equity fund and has no plans to meddle in the management.

By Bae Ji-sook (baejisook@heraldcorp.com)

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