SINGAPORE - EMS Energy controlling shareholder, executive chairman and CEO Ting Teck Jin has charged shares in the company to Asean Finance Corporation as security for a loan.
Catalist-listed EMS Energy, which produces oilfield services equipment, said the total shares charged amounted to 271 million or about 60.39 per cent of the issued share capital of the firm.
Mr Ting charged 1.2 million shares, while Titanium Holdings - in which he is a controlling shareholder and director - charged 269.8 million shares, the firm said in a stock exchange filing on Monday (Sept 19).
The shares were pledged as security for a short-term project loan facility of US$5.8 million extended by Asean Finance Corporation (AFC).
As at Sept 19, the principal amount outstanding under the AFC loan facility is about US$5.5 million, EMS Energy added in the statement.
Having charged their shares, Mr Ting and Titanium Holdings cannot directly or indirectly trade the shares without first seeking consent from AFC.
In the event that the company fails to pay the outstanding amounts due and payable under the AFC loan facility, AFC shall be entitled to exercise the share charge.
"Accordingly, it may trigger cross defaults under other facilities which contain restriction in control provision. The aggregate level of borrowings which are outstanding and may be affected is approximately S$8.1 million as at the date of this announcement," EMS Energy noted.