SINGAPORE - Beleaguered offshore marine company KS Energy has clarified on Monday (Aug 17) that a debt owed to OCBC Bank by its subsidiary KS Drilling was lower than US$230 million, as previously reported.

The Singapore-listed company added that the debt to South-east Asia's second largest lender is "secured by various assets including KS Drilling's jack-up and land rigs".

The statement also addressed the recent resignation of Kris Wiluan, KS Energy's former chairman, chief executive and director, who is facing 112 charges for alleged market rigging and false trading.

Mr Wiluan explained in the latest statement that his decision to resign from his positions "was to allow him to focus on his defence and to not let KS Energy group be distracted or be entangled by his personal problems", adding that he supports the board's choice of having his son, Richard Wiluan, succeed him as CEO and chairman.

"Like all companies in the offshore and marine sector, KS Energy is facing unprecedented challenges from the devastating impact of Covid-19 on the global economy," the older businessman said.

"Richard will work closely with our creditors and business partners to navigate through this crisis," he added.

KS Energy, in a filing to the Singapore Exchange on Wednesday (Aug 12), said that, with the letters of demand, the company "is unable to reasonably assess its financial position".

It was reported last week that OCBC issued letters of demand to the firm and its eight units to pay up outstanding loans of US$230.7 million and $10.3 million, or face legal action including a possible winding up.

KS Energy is "seeking legal advice and will engage OCBC to remedy the situation, and to advance the interests of all stakeholders", it said in its latest statement.

It added that it will keep shareholders "informed on material developments and advises shareholders to exercise caution in the trading of their shares".