At the China Aviation Oil (Singapore) (CAO) creditors' meeting held in Singapore on June 8 the new debt restructuring scheme submitted by CAO was overwhelmingly approved, which enabled the company to escape liquidation. During the following step CAO will consult with the new investors on equity restructuring.

Ninety-two creditors voted at the meeting, whose rights totaled $555,440,116. Among them 89 creditors (whose rights totaled $539,134,549) were for the scheme, who represented 97 percent of the attending and voting creditors either in terms of quantity or amount. Therefore, the scheme was passed without difficulty.

Having lost more than $500 million in an oil derivative deal CAO announced in November 2004 that it had appealed to the Singapore's High Court for restructuring debts. In January CAO released initial debt restructuring scheme which was opposed by some creditors. After making certain modifications the company announced the revised scheme in mid-May, promising that the company would repay $275 million of its debts in five years with the payment ratio at 54 percent. Currently the debts CAO owes to 100 creditors total to $510 million.

It has been confirmed that departments of Singapore concerned have begun to take legal actions against some executives of CAO. Among them is Chen Jiulin, CAO's suspended CEO.

By People's Daily Online