Friday 29 Mar 2024
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KUALA LUMPUR (Dec 8): Toyo Ventures Holdings Bhd has proposed to settle RM250.45 million in debts owing to four parties, via the issuance of five-year zero coupon irredeemable convertible unsecured loan stocks (ICULS).

The amount is part of total outstanding debts of RM435.48 million owing to Ng Lu Siong @ Ng Soon Huat, Eng Lian (L) Inc (ELLI), Biscayne Investment Pte Ltd (BIPL), and Nextgen Corp as at end-June 2020, Toyo said in its filing.

Save for Nextgen, all the other parties are shareholders of Toyo, with Ng being the major shareholder with direct and indirect interests of 0.9% and 14% respectively — the latter held via Eng Lian Enterprise Sdn Bhd, which is the parent of ELLI and BIPL.

The creditors loaned out the aforementioned funds to Toyo, in order to fund its initial development costs for a US$3.24 billion coal-fired power plant Song Hau Power Complex in Vietnam.

The power plant has a capacity of 2 x 1,060 megawatt, and the project includes ancillary infrastructure such as coal jetties and waste treatment systems. Toyo had incurred RM387.3 million in costs as of end-June 2020.

Under a settlement agreement inked by Toyo and the parties, the proposal entailed issuance of 208.71 million zero-coupon ICULS at RM1.20 apiece.

The ICULS are convertible to ordinary Toyo shares on a one-to-one basis, with a five-year tenure to maturity.

Toyo pointed out that it is not the intention of the creditors and persons acting in concert to undertake a mandatory takeover offer upon conversions.

"The proposed settlement aims to address the long outstanding debts owing to the creditors which have been gradually accrued since 2009," Toyo said.

The proposal will require shareholders' approval at an upcoming extraordinary general meeting to be organised later.

Toyo's share price settled down six sen or 3.8% to RM1.52, giving it a market capitalisation of RM178.91 million.

Edited ByLam Jian Wyn
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