Hong Kong’s Asia Fund Space Group, an online regional financial consultancy agency specialising in equity market restructuring and financing, has agreed to acquire new shares in the capital of Singapore’s Ezra Holdings and is also considering injection of new assets into Ezra.
Ezra Holdings filed for chapter 11 in the US last March and has been seeking investors since.
The new agreement is subject to Ezra shareholder, creditor, and court approvals being obtained and is not expected to be completed until December 31.
The agreement will see Ezra transfer all of its existing assets to a creditor trust with the proceeds and/or interests distributed to existing claimants, while new shares will also be issued in the reorganized Ezra to creditors, amounting to 4% of the resultant enlarged share capital. Asia Fund Space will invest S$1,000,000 ($755,000) into the reorganised Ezra in exchange for 92% of the resultant enlarged capital. Existing shareholders of Ezra shall hold the remaining 4%.
Mark Lee, managing director of Asia Fund Space, commented: “Ezra’s proposed restructuring plan, which Asia Fund Space has agreed to fund, seeks to create a positive situation for Ezra’s constituents. We are particularly heartened to have a role in the proposed restructuring plan by Ezra which, if approved by the courts, will provide Ezra’s creditors and existing shareholders with an incremental return. Moving forward, with its strong network in Greater China and ASEAN, AFS aims to offer similar value-added financial solutions to more SGX-listed companies.”