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Noteholders grant nod to Marco Polo's restructuring

MARCO Polo Marine said before Wednesday trading close that it has won a majority vote in support of the redemption of S$50 million notes using cash and equity swap.

Noteholders holding an aggregate of S$39.25 million or 78.5 per cent of the notes principal had submitted voting instructions or were present at the meeting.

Out of the total 157 votes cast, 141 votes representing 89.81 per cent of votes cast were in favour of the resolution. This in effect, grants the company the green light to proceed with the partial redemption of the S$50 million notes maturing in January 2018 by paying S$35,868 in cash.

In addition, it will issue 1.02 million shares priced at 3.5 Singapore cents per share to its noteholders.

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Marco Polo Marine has previously indicated to The Business Times that taking in both the cash and equity swap components, it has sought 71 per cent debt forgiveness from its noteholders.

The company has cleared the first hurdle on securing the green light from its noteholders at Wednesday's CSE so as to pave the way for S$60 million new equity to be injected into its offshore support vessel-focused business.

The new equity pledged by nine white knight investors is also conditional on the successful restructuring of S$202 million bank loans on its books.