Marco Polo Marine will hold an extraordinary general meeting on Dec 14 to seek investor approval to issue new securities that are key to the oil and gas firm's restructuring plan.
Marco Polo wants to issue 2.1 billion shares at 2.8 cents each to nine investors, including founders of Singapore-listed Super Group and Soilbuild, as part of a capital injection into the company.
After the share placements, control will shift to Apricot Capital, the private investment firm of Super Group's Teo family. A further one billion shares at 3.5 cents each will be placed with the firm's creditors.
Marco Polo has sought debt restructuring under two schemes of arrangement in Singapore for the holding company and its key shipyard subsidiary, and for its Batam-based unit under Indonesia's Penundaan Kewajiban Pembayaran Utang regime, which extends protection from creditors to entities seeking to restructure.
The proposals tabled for the group of companies are pleading for 69 per cent of debt forgiveness from its bank lenders, 71 per cent from note holders and 95 per cent for its contingent liabilities. They also offer a part-settlement of these liabilities with an equity swap.
Number of shares Marco Polo wants to issue at 2.8 cents each to nine investors, including founders of Singapore-listed Super Group and Soilbuild, as part of a capital injection into the company.
Marco Polo is also proposing to issue 269.2 million free warrants on the basis of eight for every 10 common shares held by existing shareholders. Each warrant has an exercise price of 3.5 cents.
A further 57.1 million shares at 3.5 cents apiece will be issued to RSM Corporate Advisory as consideration for professional fees.