Friday, 9 April 2021

H-Energy’s Former #Dubai-Based LNG Trading Unit Being Liquidated - Bloomberg

H-Energy’s Former Dubai-Based LNG Trading Unit Being Liquidated - Bloomberg

A liquefied natural gas trading company that was until recently based in Dubai and part of India’s Hiranandani Group is being liquidated after it was determined that it can no longer operate, according to a letter to creditors seen by Bloomberg News.

HE Mideast Ltd. had insufficient funds to meet its debts, according to the letter, dated April 1, seen by Bloomberg. The firm defaulted on at least $50 million worth of debt to LNG suppliers including Malaysia’s Petroliam Nasional Bhd and Royal Dutch Shell Plc, said people with knowledge of the matter.

The company took speculative positions on physical and paper LNG trades over the last few years, which strapped them with debt they were unable to repay, said the people, who requested anonymity as the matter is private.

Novato Investing Ltd., current owner of HE Mideast, declined to comment on any liquidation. Shell declined to comment, and Petronas didn’t respond to a request to comment. Petronas signed a supply deal with the company in 2018.

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