The Singapore dollar bond market has witnessed the
concurrent execution of three landmark capital restructuring
exercises. But initial doubts over their feasibility posed a
challenge to the issuer.
Singapore-based oil and gas company KrisEnergy successfully
incorporated four capital restructuring features into a single
debt refinancing exercise. These included a consent
solicitation for the mandatory exchange of its 6.25% S$130
million ($92.9 million) notes due 2017 and 5.75% S$200 million
senior unsecured notes due 2018 for two new corresponding sets
of oil price-linked coupon-guaranteed, interest-accruing notes
due 2022 and 2023 respectively. It also launched a S$139.5
million preferential offering of listed senior secured notes
and equity warrants.
But the Singaporean issuer was faced with a challenge to
prove to existing bondholders that the mandatory exchange
exercise was legally and commercially viable.
"Even though the legal power existed under the terms of the