Rex International Holding Limited: Detailed Investor Update on Lime Petroleum Holding Default

Key Highlights from the Report

• Event of Default Declared: The bond trustee for Lime Petroleum Holding AS (“LPH”) has formally notified bondholders that an Event of Default has occurred and is ongoing in respect of LPH’s 2027 and 2028 bonds.
• Reasons for Default: The default arises mainly due to deferred payments of trade payables beyond agreed settlement terms, non-payment to certain service providers (which could breach licence documents), and LPH’s inability to pay its debts as they become due. Under the bond terms, this situation constitutes insolvency.
• Ongoing Negotiations: LPH is currently in discussions with a bondholder committee (the Ad Hoc Group, “AHG”) representing more than 50% of the voting bonds. Negotiations are focused on securing possible liquidity funding and discussing amendments or restatements of bond terms.
• Bond Trustee’s Position: The bond trustee has decided not to take immediate formal actions regarding the default, pending the outcome of discussions with the AHG, but is reserving all rights and remedies.
• Rex’s Response: Rex International Holding Limited, as the parent company, is consulting with legal advisors and has committed to updating the market with any material developments.

Important Information for Shareholders

• Potential Share Price Impact: The declaration of an Event of Default by LPH’s bond trustee is a significant and potentially price-sensitive event. It signals serious financial distress at LPH, including insolvency under bond terms, which may have direct implications for Rex International’s financial position and reputation.
• Risk of Enforcement: While the bond trustee is currently holding off on enforcement actions, all rights are reserved. If negotiations fail, bondholders may demand immediate repayment, enforce security, or take other actions that could adversely affect LPH and, by extension, Rex International.
• Ongoing Uncertainty: The outcome of negotiations with the AHG is uncertain. The possibility of new funding or amended bond terms exists, but there is no guarantee of a positive resolution.
• Regulatory Compliance: Rex has stated it will update shareholders in line with SGX-ST rules if there are further material changes. Shareholders should closely monitor official announcements for updates.
• Advisory to Investors: The company advises shareholders and potential investors to exercise caution when trading Rex’s shares, given the heightened uncertainty and risk.

In-Depth Details

On 31 March 2026, Rex International Holding Limited announced that the bond trustee for Lime Petroleum Holding AS’s 2027 and 2028 Bonds had notified bondholders that an Event of Default had occurred and remains unresolved. The default is attributed to several interrelated financial issues: LPH has delayed payments to trade creditors beyond agreed terms, failed to pay certain service providers (potentially breaching licence agreements), and is unable to pay debts as they fall due—rendering the company “insolvent” under the bond terms.

In response, LPH is in active negotiations with an ad hoc group of bondholders (the “AHG”), which controls over half of the outstanding voting bonds. These negotiations are aimed at achieving new liquidity funding and revising the terms of the bonds to avoid further deterioration of the company’s financial position.

The bond trustee, Nordic Trustee AS, is refraining from taking immediate enforcement action, pending the outcome of these discussions or further instructions from bondholders. However, the trustee has explicitly reserved all rights and remedies, meaning that enforcement and other actions remain possible if negotiations fail.

Rex International is closely monitoring the situation and is in consultation with its legal advisors. The company has committed to providing timely updates to the market, especially regarding any material developments that could affect shareholders.

Given these developments, the company has strongly advised shareholders and potential investors to exercise caution in trading Rex International’s shares. Those uncertain about their investment decisions are encouraged to seek professional advice.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Shareholders and potential investors are advised to consult their own legal, financial, tax, or other professional advisers if in doubt about any action to take. The situation at Lime Petroleum Holding AS is evolving, and further disclosures may materially affect the company’s outlook and share price.

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