Ley Choon inks debt restructuring with creditors

It wants to pay debts according to a cash sweep mechanism.

As the group aims to increase its profitability, Singapore-listed one-stop service provider for underground utilities construction Ley Choon Group Holdings Ltd. has entered into a debt restructuring agreement with its lenders.

According to the group, the agreement provides a mechanism for repayment of the project proceeds as well as other amounts owed to lenders.

"These lenders who have existing securities over earnings from the group's ongoing projects shall release current and future project proceeds into the group's operating bank accounts subject to the terms of DRA," the group said in a statement.

It stated that it will repay the principal and interest owing to lenders according to a cash sweep mechanism and will be required make a bullet repayment – a lump sum payment for the entirety of loan amount – to the lenders on the final repayment date on March 31, 2021.

Ley Choon CEO Toh Choo Huat noted that this move will enable the group to concentrate more on business operations to improve their profitability.

"We shall now re-focus on our business operations, to secure more projects and to improve our profitability. Our order book remains healthy and divesting our non-core assets will strengthen the Group’s balance sheet. These positive developments should underpin our commitment towards improving shareholder returns”