Keppel Corp is coming to the rescue of endangered KrisEnergy, taking its stake in the restructuring firm to 67.33% via a preferential share offering.
KrisEnergy has proposed non-renounceable and non-underwritten preferential offering of up to S$140m in principal amount of senior secured zero coupon notes due 2024, in the denomination of S$1.00 for each note, with up to 1,252,128,996 free detachable warrant.
Keppel, through its wholly-owned indirect subsidiary, Devan International, currently has a 39.99% in beleaguered KrisEnergy.
KrisEnergy said the company’s financial condition and prospects have been impacted by the fluctuation in the oil and gas and offshore marine sectors, which has led to increasing pressure on the company’s ability to comply with financial maintenance covenants in its various financing arrangements.