Trading in shares of China Aviation Oil (Singapore) Corp Ltd (CAO) resumed on
the Singapore Exchange (SGX) Wednesday after being suspended for some 16 months.
CAO, once a major jet fuel supplier listed on SGX, lost 550 million U.S.
dollars in oil derivatives trading in 2004 and applied to Singapore's High Court
for judicial protection.
Its restructuring plan, which is valued at 600 million U.S. dollars, was
formally completed on Tuesday.
Under the plan, British energy company BP and a subsidiary of Singapore's
government-related investment company Temasek Holdings have joined CAO's parent,
China Aviation Oil Holding Company ( CAOHC), to revitalize CAO with CAOHC
holding a majority of the new shares issued on the completion of the plan.
A cash distribution to creditors would also be made upon the completion of
the restructuring plan, CAO said earlier this week, adding that the balance of
some 132.6 million U.S. dollars will be restructured, deferred and repaid in
five years.
Also on Wednesday, CAO's new board of directors under independent chairman
Lim Jit Poh held its first meeting to announce the establishment of five
committees including the Audit Committee, the Disclosure Committee and the Risk
Management Committee.
Lim, who is also the non-executive chairman of ComfortDelgro, a local listed
company focusing on passenger land transport, was appointed CAO's new chairman
of the board earlier this year.
CAO's former chief executive officer (CEO) Chen Jiulin, a 45- year-old
Chinese national, was sentenced to a jail term of four years and three months
and a fine of 335,000 Singapore dollars ( about 207,000 U.S. dollars) for
cheating, false reporting and insider trading in a subordinate court in
Singapore last week.
CAO's three other former high level executives had been fined between 150,000
Singapore dollars (about 93,000 U.S. dollars) and 400,000 Singapore dollars
(about 247,000 U.S. dollars) earlier this month while its former chief financial
officer Peter Lim was jailed two years and fined 150,000 Singapore
dollars.