Pindan subsidiary gets creditor's nod for restructuring: Oxley

OXLEY Holdings on Thursday said the creditors of a Pindan Group subsidiary have approved a proposed deed of company arrangement (DOCA) which will pave the way for a restructuring, returning it to a position of solvency.

The subsidiary is Pindan Asset Management (PAM), an 85 per cent-owned subsidiary of Pindan Group - Oxley's troubled wholly-owned subsidiary in Australia.

The Singapore property developer had announced in May that Pindan and certain of the latter's wholly-owned subsidiaries had appointed voluntary administrators. Pindan had experienced pandemic-related challenges that caused delays to construction activities, project completions and collection of project proceeds.

On Thursday, PAM creditors approved the DOCA in a second creditor meeting. The proponent of the DOCA was Programmed Facility Management (PFM) - an Australian and New Zealand provider of operations and maintenance services.

Under the DOCA, PAM's shares will be transferred to PFM, which will then take over the former's business and contracts.

PAM's employees will receive all their entitlements, while unsecured creditors are likely to receive 48 to 81 per cent of the amounts they are owed, depending on the outcome of PAM's asset recovery.

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Had PAM gone into liquidation, employees may have received 54 to 100 per cent of their entitlements, while unsecured creditors receive zero to 4 per cent of what they are owed.

Oxley previously said it expects to take a non-cash charge of about S$50 million for the financial year ended June 30, comprising writing off of net assets of Pindan Group. It also provided corporate guarantees to secure up to A$12.5 million of insurance bonds issued for the benefit of Pindan Group.

Shares of Oxley closed 2.2 per cent or 0.5 Singapore cent lower at 22.5 cents on Thursday, before the announcement.