Ezion shareholders vote in favour of debt refinancing plan

SHAREHOLDERS of Ezion Holdings on Wednesday voted overwhelmingly in favour of a debt refinancing plan for the offshore and marine group.

Some 99.22 per cent of the votes cast by shareholders at the extraordinary general meeting were in favour of the landmark debt refinancing plan touted as having tabled no haircuts for its debt-holders.

The plan, which seeks deleveraging from swapping debt to equity, calls for significant dilution of existing equity.

Holders of S$575 million in securities will hold 35 per cent of the enlarged equity if they fully exercise the debt-to-equity swap options and their warrants. Existing shareholders can retain 56 per cent of the enlarged equity on exercising all the warrants allotted. Bank lenders and other stakeholders stand to hold up to another 9 per cent.

The plan will also see new shares and option shares issued as settlement of professional fees and an incoming investor, Asdew Acquisitions Pte Ltd.