China Aviation Oil (Singapore) Corp (CAO) is seeking more time to stitch together a deal with creditors owed money as a result of its US$550 million derivatives loss.
CAO yesterday applied to the Singapore High Court for a six-week extension as it negotiates a scheme of arrangements with seven creditors demanding payment of US$247.5 million.
The move by CAO comes amid signs that its Beijing-based parent company, China Aviation Oil Holding (CAOH), is keen to place much of the blame for the massive derivatives loss on its Singapore-listed subsidiary.
CAOH's legal counsel in Singapore - Stamford Law Corp's Yap Lian Seng - said there were serious omissions in the affidavit filed in court last week by CAO's suspended chief executive, Chen Jiulin, in support of its initial request for a scheme of arrangements.
'The parent company was not informed about quite a lot of things,' Mr Yap said yesterday.
Mr Yap said the affidavit filed by Mr Chen - who has since fled to China - had a number of omissions about CAOH's October 20 placement of a 15 per cent stake in CAO.
Mr Chen claimed in his affidavit that CAOH had been informed about the substantial derivatives losses at its Singapore subsidiary about two weeks before this share placement was made.
