OXLEY Holdings on Thursday said the creditors of a Pindan Group subsidiary have approved a proposed deed of company arrangement (DOCA) which will pave the way for a restructuring, returning it to a position of solvency.

 

The subsidiary is Pindan Asset Management (PAM), an 85 per cent-owned subsidiary of Pindan Group - Oxley' s troubled wholly-owned subsidiary in Australia.

 

The Singapore property developer had announced in May that Pindan and certain of the latter' s wholly-owned subsidiaries had appointed voluntary administrators. Pindan had experienced pandemic-related challenges that caused delays to construction activities, project completions and collection of project proceeds.

 

On Thursday, PAM creditors approved the DOCA in a second creditor meeting. The proponent of the DOCA was Programmed Facility Management (PFM) - an Australian and New Zealand provider of operations and maintenance services.

 

Under the DOCA, PAM' s shares will be transferred to PFM, which will then take over the former' s business and contracts.

 

PAM' s employees will receive all their entitlements, while unsecured creditors are likely to receive 48 to 81 per cent of the amounts they are owed, depending on the outcome of PAM' s asset recovery.

 

Had PAM gone into liquidation, employees may have received 54 to 100 per cent of their entitlements, while unsecured creditors receive zero to 4 per cent of what they are owed.

 

Oxley previously said it expects to take a non-cash charge of about S$50 million for the financial year ended June 30, comprising writing off of net assets of Pindan Group. It also provided corporate guarantees to secure up to A$12.5 million of insurance bonds issued for the benefit of Pindan Group.

Oxley Holdings has priced $70 million of 6.9 per cent notes due 2024, issued under its US$1 billion (S$1.35 billion) guaranteed euro medium-term note programme.

 

In its announcement on Friday morning, the property developer said net proceeds will be used for general corporate purposes, including the refinancing of borrowings, as well as working capital and capital expenditure requirements of the group.

 

The series 4 notes are expected to be issued on July 8, 2021.

 

They will bear a fixed rate of 6.9 per cent per annum and will mature on July 8, 2024.

 

Credit Suisse and DBS Bank have been appointed as the arrangers and joint bookrunners for the deal.

A WHOLLY-OWNED subsidiary of property developer Oxley: 5UX +2.17% has entered into an agreement to sell a piece of its land overseas for around S$100 million, it said on Wednesday in a stock exchange filing.

 

The property has a book value of around S$60 million, based on the group' s financial statements for the financial year ended June 30, 2020, and the proceeds of the sale will " contribute positively to the cash flow of the group" , it said.

 

The group did not specify which property it was selling, nor the buyer.

 

Oxley expects the sale, if completed by June 30, 2022, to have " a material impact on the expected earnings per share of the company for the financial year ending June 30, 2022" .

 

A deposit of 10 per cent of the sale price has been paid, and the balance will be paid upon completion of the sale, which is conditional upon obtaining regulatory approval to allow greater development of the site within 12 months from the date of the contract, Oxley said.

 

It added that none of the directors or controlling shareholders of the company has any interest in the sale, except for a shareholding in the company, if any.