Two struggling companies got fresh equity injections.
Two financially challenged listed offshore and marine (O&M) entities recently nabbed fresh equity injections, and analysts say it buoys hopes that those still holding up three years into an industry downturn may make it to the light at the end of the tunnel.
Emas Offshore Limited is in line for $67.6m (US$50m) of new equity from Baker Technology and privately owned buyout firm Point Hope.
Moreover, Marco Polo Marine is also looking to restructure under a scheme of arrangement that will see at least $60m injected into its group of companies.
According to KGI, at least three others undertaking debt revamp or restructuring, Ezion Holdings, Nam Cheong and Pacific Radiance, are said to have potential investors lining up.
"Singapore's banks, as largest lenders to the sector, thus face a tough decision. If they are serious about riding this out with their O&M clients, they may need to bend further backwards to accept haircuts in addition to exchanging debt for equity," KGI said.
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