Vallianz Holdings has reached a pact with certain creditors to convert trade payables into new shares.
The Singapore-listed company will issue 380.6m shares to settle outstanding bills worth SGD 7.6m ($5.4m).
Thirteen trade creditors will subscribe to the new stock, Vallianz added.
Ling Yong Wah, chief executive of Vallianz, said: “The group has over the years built up long-term working partnerships with our vendors.
“They have a good understanding of the group’s business and we believe this exercise is a reflection and testament of their trust and confidence in Vallianz’s prospects.”
Vallianz secured fresh funding of SGD 7m a month earlier as well, from Lim Oon Cheng, who is reported to be the brother of Ocean tankers patriarch Lim Oon Kuin.
The offshore vessel owner posted net income of $3m in the fourth quarter, a decline of 35%.
Due to lower demand, the company shut down its shipyard in Singapore in January.
