Advance SCT to issue 3b fewer shares, gain loan extension under new debt plan

ADVANCE SCT will issue 3 billion fewer shares to creditors as part of changes to a debt capitalisation plan, the supplier of copper-related products announced on Monday after the market closed.

Advance SCT had previously agreed to issue 8.95 billion shares to Fort Canning (Asia) to capitalise S$4.48 million of debt, comprising S$2.98 million that was assigned to Fort Canning by one Zhang Baoan and S$1.5 million of a short-term loan from Fort Canning to the company.

But Mr Zhang, who is owed a further S$5.72 million by Advance SCT, and Fort Canning have since agreed to terminate that assignment. Instead, Mr Zhang is assigning S$4.5 million of his claims to three parties: individuals Jin Ran and Nie Mi Na; and Summit Systems (HK). Mr Zhang will retain S$4.20 million of the claims.

As a result of those changes, the Fort Canning debt capitalisation plan is no longer in place. Fort Canning has instead agreed to extend the repayment deadline for its term loan by one year to Aug 15, 2019, with no additional interest.

The three new assignees will be added to a concurrent debt capitalisation exercise that would have originally exchanged S$8.21 million of debt for 16.42 billion Advance SCT shares. Together with the earlier Fort Canning deal, Advance SCT would have issued 25.37 billion new shares under the old plan.

That capitalisation exercise will now cover S$11.19 million of debt with the issuance of 22.37 million Advance SCT shares. Following the issuance of those shares, Advance SCT's issued share capital will be 2.5 times the current number of shares.

Advance SCT shares are suspended on the Singapore Exchange.