UPSTREAM oil and gas company KrisEnergy has made changes to its restructuring proposal, it said in a filing to the Singapore Exchange on Friday.
“The key change in the final restructuring proposal is a higher allocation of equity to unsecured debt holders under the scheme, and reduced dilution for existing shareholders,” it said in a presentation released to SGX. Stakeholders are to vote on the proposal either through a scheme of arrangement, a consent solicitation process or shareholders’ approval.
Post restructuring, the shareholding structure will see unsecured creditors owning 46.2 per cent, while the zero coupon note holders will hold 43.8 per cent. Existing shareholders will hold 10 per cent. In the earlier proposal, existing shareholders were to be diluted to 7.5 per cent, and unsecured creditors were to hold 35 per cent.
“If the scheme does not pass or shareholders do not approve or the consent solicitation does not pass, then this consensual restructuring will fail,” KrisEnergy added. Without a comprehensive restructuring, KrisEnergy is likely to face liquidation, it warned. It aims to complete the restructuring by Nov 18.
KrisEnergy has invited shareholders, warrantholders and the affected noteholders to its third informal investor meeting on Aug 27.