EMS Energy ropes in Titan to raise $7.2m

Singapore’s offshore services firm EMS Energy and Hong Kong-listed Titan Petrochemicals Group have entered into a non-binding memorandum of understanding (MOU) to raise up to SGD10m ($7.2m) by way of the issuance of convertible notes.

EMS Energy said the funds would help the company in completing the construction of its shipyard in Singapore.

The proposed investment into the shipyard is subject to a successful completion of a restructuring exercise undertaken by EMS Energy based on a scheme of arrangements announced in February this year.

“The board anticipates that should the restructuring under the scheme of arrangement be completed, the company is expected to have discharged all its liabilities to its creditors. Thereafter, the Titan Group, with their financial strength, necessary experience and expertise would be a strong partner for the company to bring the shipyard to operation,” EMS Energy said.

Under the non-binding MOU, Titan Group’s option to convert the debt into equity will commence 24 months after the first disbursement of SGD10m through the issuance of convertible notes.

During the tenure of the convertible notes, it is anticipated that Titan Group will have the Singapore shipyard as security.

The Titan Group itself has ended a six-year ordeal after it successfully restructured its debts in July 2016.

Titan Group had said it would reactivate its shipbuilding and repair business at its yards in China’s Quanzhou, and expand into offshore and marine engineering services.

Posted 29 March 2017

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Lee Hong Liang

Asia Correspondent