CATALIST-LISTED Viking Offshore and Marine is looking to raise gross proceeds of about S$4 million through a share placement to facilitate the restructuring of its debts and liabilities as part of the proposed creditors scheme.
Proceeds will be used to repay debt owed to eligible creditors, as well as professional fees and the group's working capital needs.
The group said on Sunday that it had entered into a binding conditional term sheet with businessman Li Suet Man (along with certain parties to be identified by Mr Li in due course), Blue Ocean Capital Partners, a company owned by the son of executive chairman Andy Lim, as well as Viking's CEO Ng Yeau Chong for the placement.
The three investors will subscribe for new shares equivalent to 65.25 per cent, 15.225 per cent and 6.525 per cent respectively, of the enlarged issued shares, after taking into account new shares to be issued to creditors, as part of the proposed creditors scheme of arrangement to be finalised in due course.
From the three investors, a cash consideration of S$3 million, S$700,000 and S$300,000, will be raised respectively.
The issue price of the creditors' shares will be determined according to the proposed creditors scheme when it is finalised, after the creditors have filed their proof of debts and the adjudication process is completed.
The term sheet will form the basis of a definitive share subscription agreement to be signed between the company and the investors by no later than Oct 29, 2020, the company said.
Mr Li is a well-known personality in the Singapore-China economic collaboration community. He is currently chairman of the Energy & Chemicals Industry Group of the Singapore Manufacturing Federation and the Small and Medium Enterprise Centre @ Singapore Manufacturing Federation.
Blue Ocean is a corporate consultancy on mergers, acquisitions, joint ventures and corporate restructuring. The executive director and sole shareholder, Daniel Lin Wei, holds 840,000 shares and 120,000 warrants in the company.
Mr Ng holds 1.54 million shares and 220,000 warrants in the firm.
Viking is undergoing a court-supervised process to reorganise its liabilities, and has been granted moratoria against enforcement actions and legal proceedings by creditors against the company and its wholly-owned subsidiary, Viking Asset Management.
The company expects the proposed placement to be completed concurrently with completion of the proposed creditors scheme.
Trading of its shares on the Singapore Exchange has been suspended since June 14 last year.