The Board changes proposed by Halom Investments Pte Ltd (combined with Halom's plan to replace the current CEO of MMA) have the potential to destabilise the strong relationships the Company currently enjoys with its clients and its lenders; relationships which are crucial to the successful continuation of the recovery strategy in place.
MMA’s second largest shareholder, Black Crane Asia Opportunities Fund (managed by Black Crane Capital), supports the current recovery strategy and Mr Peter Kennan, Managing Partner and CIO of Black Crane Capital, has joined the Board as further demonstration of Black Crane Capital’s support and confidence in the Company, its Board and its management.
The strategic review recently undertaken with Pareto Securities highlighted the benefits of an orderly, structured and timely equity raising, as a means to support the extension of the Company’s debt facilities beyond 2019, whilst also positioning the Company to take advantage of opportunities that are expected to arise in an improving market.
MMA is considering a suitably timed and priced equity raising, coupled with negotiating amended an extended debt facilities with the Company’s lenders.
This will involve negotiations with both debt and equity providers (some of which are already underway) to ensure the best possible outcome for ALL stakeholders.
Until formal negotiations with the lenders are completed, the Board cannot specify what these amendments might entail but given the previous support from our lenders and coupled with an appropriately structured equity raising, the Board considers this to be an achievable and sound approach.