Case Study
Project MEO
Ongoing- Type of Case :
- Advisor to Bondholder’s in restructuring
- Title :
- Advisor to Bondholder’s in restructuring
- Status :
- Ongoing
- Value :
- USD 450 million
PROJECT OVERVIEW
- Michlyn Express Offshore Limited (“MEO”) is a reputed and reliable provider of support vessels and project transportation solutions to the offshore oil and gas industry. Headquartered in Singapore, MEO has been providing specialised marine support since the 1970s, with operations in SEA, Middle East and Australia, expanding into Latin America, Africa and India.
- MEO was one of the early applicants for bankruptcy protection under Section 211B of Singapore’s newly revised corporate restructuring laws.
- We are engaged by the Informal Steering Committee of Bondholders in MEO to represent their interests in the restructuring of MEO.
PROJECT ISSUES
- MEO was a victim of the downturn in the global OSV market which has seen its profits decline significantly.
- Having raised bonds from Singapore’s retail market in 2015 (due November 2018), MEO was unable to meet its first ranking USD 300 million obligations, nor the repayments of the due 2018 USD 150 million bonds, which subsequently traded to distressed hedge funds.
- With a depressed market which has been overrepresented with bankruptcies in recent years, restructuring options have been limited and the search for investors challenging.
WHAT WE DID
- While the project is ongoing, we are heavily involved in negotiations with the Company, its financial and legal advisors and other stakeholders, including the Securities Investors Association (Singapore).
PROJECT OUTCOME
- Project is on going