Singapore’s Blue Ocean Resources enters notes restructuring agreement

By Caroline Salls

Pittsburgh, July 28 – Blue Ocean Resources Pte. Ltd. entered into a restructuring support agreement with its parent and the holders of 55.66% in original principal amount of its step-up rate guaranteed senior secured notes due 2020, according to a notice released Friday.

The proposed restructuring would be implemented through a scheme of arrangement under Section 210 of the Companies Act of the Republic of Singapore.

The company said an increase in plasma receivables “caused a significant adverse effect on the cashflow of the group.” Blue Ocean said the increases resulted from an unfavorable nucleus-plasma scheme agreement and continued declining performance of its plasma farmers.

According to the notice, a streamlining of operational procedures resulted necessitated a 60% reduction in the group’s headcount.

As of March 31, Blue Ocean said the group’s equity value was down to Rp 67 billion, with further deterioration expected.

Under the proposed restructuring, the notes would be exchanged for $145.75 million in principal amount of new guaranteed secured notes due Dec. 31, 2021, as well as mandatory exchangeable bonds issued by a shareholder of the parent company. Those bonds would be exchangeable for 23% of the outstanding shares of the parent company.

In addition, coupon payments due June 30 and Dec. 31 are expected to be addressed in the scheme of arrangement.

Noteholders who consent to the restructuring support agreement by Sept. 10 and vote in favor of the scheme of arrangement will be eligible to receive a consent fee equal to the original principal amount of notes held by the holder, divided by the total principal amount of notes held by all eligible creditors, multiplied by $20 million.

Informal meetings of noteholders will be held on Aug. 3 and Aug. 4 in Singapore and Hong Kong to provide an update on the group’s financial and operational performance, the notice said.

Singapore-based Blue Ocean is a subsidiary of seafood producer PT Central Proteinaprima Tbk.

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