TT International enters term sheet to receive potential S$125m investment

SINGAPORE - Distressed consumer electronics trader TT International Limited on Friday (Feb 2) announced that it entered into a term sheet agreement on Jan 31 with an unnamed potential investor as part of the company's financial restructuring efforts.

The proposed investment, which could be worth up to S$125 million, will be undertaken by a fund set up by the said investor, and may take the form of either or both of a loan to TT International and a subscription to new TT International shares, according to a filing to the Singapore Exchange.

If the investment takes the form of a new capital commitment, this may result in the investors receiving at least 24.5 per cent of the enlarged shareholding of the reorganised company, TT International added.

The company intends to use proceeds from the proposed investment to make statutory payments in relation to the Big Box building owned by its subsidiary, Big Box.

Funds will also be used for working capital, payment for debts owed under the scheme of arrangement from Apr 19, 2010; and other existing indebtedness and payables.

The long stop date of the term sheet is May 31, unless extended in writing by the investor and the company, TT International said.

The proposed investment is subject to among other conditions, an extension of time for the statutory payments in relation to the Big Box building, the Economic Development Board's approval for the renewal of the Warehouse Retail Scheme for the remaining 19 years and court sanctions of the restructuring exercise.

TT International was granted in September 2017 a moratorium application to restrict all creditors from taking further action against the company for the above mentioned period until Feb 11.

Its shares have been suspended since August 2017.

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