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Loss-making Gaylin Holdings completes US$100m investment and debt restructuring

GAYLIN Holdings has completed a US$100 million investment and debt restructuring organised by Asian private equity fund manager ShawKwei & Partners.

On Tuesday, the multidisciplinary offshore and marine services firm announced in a Singapore Exchange filing that ShawKwei has purchased US$52 million worth of new Gaylin shares and holds a 76 per cent stake in the company.

The 1.36 billion new ordinary shares in Gaylin were bought at five Singapore cents apiece.

The banks which have loaned the amount to Gaylin include UOB, OCBC, CIMB and RHB.

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Together with the new equity investment, Gaylin restructured bank debt facilities totalling US$48 million by extending repayment dates and adjusting covenants.

Kyle Shaw, newly appointed chairman of Gaylin as at March 13 and founder of ShawKwei, said: "The equity and debt financing provides long-term stability for Gaylin and will underpin sales growth through existing operations as well as attract potential acquisitions of similar businesses."

On Tuesday, Gaylin also announced several changes to its board.

CEO Desmond Teo Bee Chiong, who was appointed in February 2010, has resigned.

The company said that this was due to the change in control of the company, and Mr Teo will serve a six-month notice period. He will be appointed a consultant of Gaylin immediately after the notice period expires.

Others who have resigned include Ang Mong Seng, who will no longer be the independent non-executive chairman of the company from March 13, and Ng Sey Ming, who will cease to be an independent non-executive director.

Gaylin also announced the appointment of James Parsons as the global managing director of the company and Victoria Yong as the senior vice-president of finance with effect from March 13.

For the third-quarter ended Dec 31, 2017, Gaylin widened its losses.

It posted a loss of S$2.6 million, a further decline of 29.8 per cent compared to the year-ago period.

Revenue similarly fell by 23.6 per cent to S$14.6 million from S$19.1 million in the year before on the back of a still-weak oil and gas market.

The decrease was mainly due to a drop of S$5.3 million in the rigging and lifting segment, which was offset by an increase of S$0.8 million in the ship chandling segment, Gaylin said.

Gaylin last traded and closed at S$0.054 on Feb 28.