Keppel Corporation says it is prepared to support KrisEnergy’s final restructuring proposal.
KrisEnergy on August 21 released its final proposal, where unsecured debt holders under the scheme will receive a higher allocation of equity. There will be a reduced dilution for existing shareholders under the same scheme.
On Aug 14, 2019, Keppel Corporation supported KrisEnergy’s initial application to the High Court of Singapore for moratorium protection as its significant direct creditor.
Keppel Corporation holds KrisEnergy’s zero coupon notes (ZCNs) due 2024.
KrisEnergy’s indirect wholly owned subsidiary, KrisEnergy (Asia) (KE Asia) also owes Keppel Corporation, through a bilateral contract with DBS Bank, some US$180 million ($244.4 million) of outstanding principal under a revolving credit facility agreement. Keppel Corporation holds an indirect interest in the loan through a bilateral contract between itself and DBS.
On July 9, Keppel Corporation extended its deadline for KrisEnergy to complete its restructuring process to September 30 from July 15.
On June 5, KrisEnergy said it was “confident” that its credit facility agreement amounting to some US$87 million (S$121.7 million) with Keppel Corporation’s subsidiary Kepinvest Singapore, will remain unchanged.
The credit facility agreement was made on April 30.
According to a filing on August 30, Keppel Corporation says it believes that the final structuring proposal is “deliverable” subject to the support of its stakeholders.
It adds that it “hopes to see a successful conclusion to the financial restructuring in the next few months”.
Keppel Corporation says it does not expect KrisEnergy’s consensual restructuring to have a material impact on its net tangible assets or earnings per share for the current financial year.
Shares in Keppel Corporation closed 6 cents higher, or 1.3% up, at $4.63, on August 28.