SINGAPORE - Home-grown seafood supply chain manager, Oceanus Group Ltd, announced on Wednesday (Jan 25) that it has entered into a binding term sheet with its key creditors in relation to a proposed debt restructuring.
Oceanus said this plan will see the company converting 76.4 per cent of its total outstanding debt to equity, thus substantially improving its balance sheet.
Under the plan, Oceanus' key creditors - BW Investment Ltd, Ocean Wonder International Ltd and Ocean King Group Ltd - have agreed to transfer approximately S$31.87 million of the outstanding debt to a consortium consisting new value investors and Oceanus' management.
To assist with the general corporate purposes and the ongoing working capital requirements of Oceanus, the new investors will inject new funds of up to S$6 million, of which S$5 million will be contributed by the new investors and S$1 million from the management.
A further S$29.57 million of outstanding debt will be converted to new shares at S$0.00395 each, while the remaining S$20 million will not be repayable until Dec 31, 2018, and interest shall cease to accrue on and from July 1, 2016. This S$20.0 million debt will also be free of any redemption premium, make-whole amount or adjustment rights.
The proposed debt restructuring is subject to shareholders approval at an extraordinary general meeting to be convened.
Said Oceanus' executive director and chief executive officer Peter Koh: "This is a good outcome and signals the 'revival' of Oceanus. With our books in the process of being cleaned up, and the support of a committed management team, we can now drive new business initiatives and put in place the growth engines required to propel our turnaround."