Marco Polo seeks noteholders' nod on haircut, waivers for 5.75% bonds due 2016

MARCO Polo Marine is seeking noteholders' approval to take a sharp haircut and waive key obligations for a S$50 million series of 5.75 per cent notes due 2016.

The offshore and marine company is asking, among other things, that noteholders give it the right to redeem the bonds by January 2018 by paying S$35,868 in cash and the same amount in shares priced at 3.5 Singapore cents per share, representing a combined redemption amount of S$71,736.

The noteholders' meeting will take place on Nov 15 at Ocean Financial Centre.

As at June 30, 2017, the company faced total debt of S$260.8 million, comprising S$250 million in secured debt and S$10.8 million in unsecured debt. The company is currently operating under the protection of a court moratorium on claims from its creditors.

Marco Polo needs to restructure the notes in order to receive S$50 million to S$60 million of investments that are being discussed. About S$40 million to S$45 million of that potential capital will be spent on refinancing and debt restructuring, with the remainder kept for working capital.

The company's shares are currently suspended.