China state asset management firm Huarong provides loan to Brightoil

BEIJING, May 28 () – China Huarong Asset Management Co Ltd, one of the country’s four biggest asset managers, said it has restructured some debts and provided a loan to Brightoil Petroleum Holdings Ltd to support its business.

Huarong’s offshore unit, China Huarong Overseas Investment Holdings Co, provided Brightoil about $30 million in loans on May 19, “to support its business operation and the repayment of debt amid the coronavirus epidemic”, Huarong said in an e-mail response to query.

In December, Huarong also completed the restructuring of a total $362 million of Brightoil’s debt with loan maturity ranging from 5 years to 12 years, it added.

Brightoil said in a statement on May 19 it has also entered loan restructuring agreements with Bank of China, in addition to Huarong.

The beleaguered oil trading and logistics company suspended trading in its shares in October 2017 and had debts totalling $1.9 billion, according to a statement to the Hong Kong stock exchange in January 2019.

Brightoil has recently reached a settlement with creditor Petrolimex for about $30 million, Brightoil said. (Reporting by Cheng Leng in Beijing Editing by Florence Tan and Lincoln Feast.)

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