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MARCO Polo Marine won a majority vote at an extraordinary general meeting on Thursday in favour of issuing new securities that are key to the offshore and marine (O&M) company's restructuring plan.
Marco Polo said before trading close on Thursday, it has won a 98.64 per cent approval vote representing over 13.07 million shares in the company for the first resolution.
Shareholders present at the EGM also cast a 99.94 per cent majority vote, representing just under 221.74 million shares in the company for the second resolution.
The first resolution relates to the issuance of new shares to nine incoming investors and creditors and warrants to existing shareholders. The second resolution is for the issuance of new shares to RSM Corporate advisory as settlement of professional fees.
The company's controlling shareholder and executive chairman, Lee Wan Tang, and its immediate and ultimate holding company, Nautical International Holdings, have voluntarily abstained from voting for the first resolution.
Mr Lee and his investment vehicle, Nautical, are related parties to members of Marco Polo's key management who are eligible for new strategic investors' incentive plans tabled with the restructuring proposal.
Marco Polo has proposed to issue 2.1 billion shares at 2.8 Singapore cents each to nine strategic investors.
A further 1 billion shares at 3.5 Singapore cents each will be placed with the company's creditors.
The company is also proposing to issue 269.2 million free warrants on the basis of eight warrants for every 10 common shares held to existing shareholders. Each warrant has an exercise price of 3.5 Singapore cents.
Another 57.1 million shares at 3.5 Singapore cents apiece will be issued to RSM Corporate Advisory as consideration for professional fees.
Marco Polo and its key operating subsidiary are seeking to restructure under two schemes of arrangement filed with Singapore's High Court.
After winning the majority vote from its shareholders on Thursday, the company has just one remaining hurdle to clear before it can proceed with restructuring under the two schemes.
It needs to secure the greenlight from the Indonesian court for the restructuring of its Batam-based subsidiary under the Penundaan Kewajiban Pembayaran Utang (PKPU) regime.