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Koon Holdings creditors' meeting adjourned; debt restructuring scheme approved for unit
MAINBOARD-LISTED Koon Holdings on Wednesday said that creditors have approved the scheme of arrangement for its subsidiary Koon Construction & Transport (KCT), as part of the group’s debt restructuring exercise.
However, Koon Holdings has yet to put its own proposed scheme to a vote, as its creditors’ meeting on Tuesday was adjourned.
Before the meeting began, a major creditor had requested the adjournment because it would like to receive more information before committing its vote, Koon Holdings said in a bourse filing.
The company will convene the adjourned meeting at a later date to be determined, before its debt moratorium expires in April 2020.
Koon Holdings said it will also “make arrangements” to address the creditors’ concerns and queries.
Under the Companies Act, a scheme becomes binding on the creditors if a majority in numbers (more than 50 per cent) representing at least 75 per cent in value of the creditors in every voting class voted in favour of the scheme at the meeting.
The meeting for KCT’s scheme had taken place as scheduled on Tuesday at 4pm.
Both firms first applied for their debt moratoria last October, as they intended to propose and implement schemes of arrangement.
Koon Holdings is an infrastructure and civil engineering service provider specialising in reclamation and shore protection works. KCT is the group's main operating company.
The chief financial officer of Koon Holdings, Yee May Yo, left the firm earlier this month, after about a year on the job. She was replaced by Peter Tan.
Shares of Koon Holdings have been suspended since Aug 30.