UDL Holdings OKs Restructuring Plan

UDL Holdings Ltd., its subsidiaries and controlling shareholder have reached an agreement to restructure and rescue the group, excluding its unit KEL Holdings Ltd. The proposed reorganization includes a rights issue and the purchase of Hong Kong Asset Co. and Singaporean Asset Co., which would have a fleet of vessels with the necessary critical mass to compete in the marine engineering construction industry. The plan involves the consolidation of 20 shares into one share, capital reduction, disposal of scheme assets and issue of new shares representing 50 percent of the issued capital as enlarged by the issue of new shares and the rights issue. HF Co, which controls 54.4 percent of UDL, had agreed to fully underwrite the rights issue, set on a basis of five rights shares for every consolidated share held. The proceeds from the rights issue, estimated at about $2.6 million, will be mostly used to buy Hong Kong Asset and Singaporean Asset Co., company officials said.