Hatten Land's (SGX:PH0) judicial managers proposed a pre-packaged scheme of arrangements with the company's creditors as part of a broader restructuring plan, according to a Thursday filing with the Singapore Exchange.
The scheme is part of the financially distressed company's proposed acquisition of Metrocon from LBD Engineering for SG$28 million, which will be satisfied through the issuance of over 107.7 million shares.
The acquisition-tied scheme is expected to provide creditors with a better recovery than liquidation, where recoveries are anticipated to be nil, the property developer said.
Under the scheme, creditors would receive new shares proportional to their approved claims, the filing said.
Both the scheme and the acquisition are inter-conditional and cannot proceed without each other, Hatten Land said.