Rex International outlines bond restructuring plans and Benin drilling overruns

SGX Filings
Apr 20

On Apr, 20 2026, Rex International Holding Limited released written replies to shareholder questions on its FY2025 annual report, detailing liquidity pressures at subsidiary Lime Petroleum Holding AS (LPH) and explaining a cost blow-out at its Benin drilling programme.

LPH has senior secured bonds of about 302 million Singapore dollars that entered an event of default after the unit deferred an interest payment of roughly 6.7 million Singapore dollars originally due on Jan, 26 2026. Bondholders have temporarily waived minimum-liquidity covenants through Mar, 31 2026 and formed an ad-hoc committee to negotiate a comprehensive recapitalisation. Alvarez & Marsal Europe LLP has been appointed as restructuring adviser and chief restructuring officer.

Rex said it has not applied recent placement proceeds to cover LPH’s coupon shortfall, citing ongoing discussions with bondholders and legal advice.

Separately, the group attributed the cost overrun at the Benin field to “geomechanically unstable shale layers” encountered during drilling that began in Aug, 2025. Stuck-pipe incidents forced redrilling, delaying first oil by more than three months and materially raising expenditure.

Management explored farm-outs and other funding options from late-2025 but none were finalised before the jack-up rig contract expired in Jan, 2026. The company will continue to update investors and advised caution when trading its shares.

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