In this article, you will get all information regarding Toyo Ventures Proposes Issuing ICULS To Settle RM354 Million Debt

Toyo Ventures proposes to settle RM354 million out of the RM355 million it owes to its creditors in relation to the Vietnam power plant project through the issuance of RM354million nominal value of five-year, zero-coupon irredeemable convertible unsecured loan stocks.

This goes back to the termination of the settlement agreement in December 2021 entered into between Toyo Ventures, NLS, ELLI, Biscayne Investments Pte. Ltd., and Nextgen Corporation, announced in February 2022, the parties continued negotiations in an effort to resolve the outstanding debts owing by the group and its subsidiaries in a holistic manner.

In accordance with the Settlement Agreement, Toyo plans to fully settle the debts through the issuance of 295,000,000 ICULS at RM1.20 per ICULS with an aggregate nominal value of RM354,000,000 to the Creditors.

Background on the project, in 2007, Toyo Ink Group Berhad, a wholly-owned subsidiary of Toyo Ventures submitted a proposal to undertake a power plant project in a suitable province in Vietnam. TIGB had since jointly worked with the local authorities and consultants in Vietnam to explore and locate a suitable site for the power plant project. In pursuance of the study and assessment of the availability and suitability of the existing infrastructure, it had since decided to construct the power plant on a build-operate-transfer basis at the Song Hau Power Complex in Hau Giang Province.

Subject to the finalisation of the detailed specifications for the Project, the ancillary infrastructure of the Project, and the associated project documents, the total investment, as already approved by the Vietnamese Government, is estimated at USD3.24 billion (equivalent to approximately RM14.36 billion) which the group intends to be financed through a combination of equity funds and bank borrowings.

The Proposed Settlement aims to address the long outstanding debts owed to the Creditors which have been gradually accrued since 2009. After due consideration of the various funding option available to the Company, the Board is of the opinion that the issuance of ICULS is the most appropriate avenue.

The group believes it will be able to reduce its total liabilities of approximately RM363.95 million by RM354.00 million to approximately RM9.95 million upon the completion of the Proposed Settlement.

Toyo Ventures Proposes Issuing ICULS To Settle RM354 Million Debt

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