Oceanus in debt restructuring deal with key creditors

HOMEGROWN premium seafood supply chain manager Oceanus Group has entered into a binding term sheet with its key creditors in relation to a proposed debt restructuring.

This is done by converting 76.4 per cent of its total outstanding debt to equity, substantially improving its balance sheet, it announced on Wednesday before the market opens.

With the proposed restructuring, its key creditors - BW Investment, Ocean Wonder International and Ocean King Group - have agreed to transfer approximately S$31.87 million of the outstanding debt to a consortium consisting of new value investors and Oceanus management (new investors).

To help with the general corporate purposes and the ongoing working capital needs of Oceanus, the new investors will inject new funds of up to S$6 million, of which S$5 million will be contributed by new value investors and S$1 million from the management.

A further S$29.57 million of outstanding debt will be converted to new shares at S$0.00395 each, while the remaining S$20 million will not be repayable until Dec 31, 2018.

The group's executive director and chief executive officer Peter Koh said: "This is a good outcome and signals the 'revival' of Oceanus. With our books in the process of being cleaned up, and the support of a committed management team, we can now drive new business initiatives and put in place the growth engines required to propel our turnaround."