LONDON - Coro Energy PLC, a South East Asian energy company, has proposed a recapitalization plan involving equity fundraising, share capital reorganization, and bond conversion aimed at positioning the company as a debt-free regional clean energy developer. The proposed measures include raising approximately £2 million through equity fundraising and restructuring the company's existing secured listed bonds, with the balance being converted into equity.
The equity fundraising, which is expected to raise gross proceeds of about £2 million, has already received conditional commitments for £1.9 million from investors. The company is also planning a share capital reorganization, which would consolidate existing ordinary shares and sub-divide each consolidated share into one new ordinary share and one new deferred share.
Coro Energy's outstanding bonds, including interest, currently total EUR 29.2 million, a correction from the previously reported EUR 22.5 million. The company intends to publish proposals related to the bonds by January 17, 2025, which include repaying 75% of the principal amount along with accrued interest, and converting the remaining principal into new ordinary shares.
The company's plans are contingent upon shareholder approval at a general meeting expected to be held on or before February 26, 2025. If the recapitalization does not proceed due to a lack of shareholder support, the company may face winding up proceedings.
In addition, Coro Energy is considering divesting a 3-megawatt pilot rooftop solar project in Vietnam to fund further development and repay part of an existing loan. The company has also signed a power purchase agreement with Vietnam's Mobile World Group for the installation of rooftop solar systems, with 87 sites already constructed.
As part of its corporate update, Coro Energy is developing utility-scale solar and wind projects in the Philippines and awaiting the outcome of a farm-down process in Indonesia. Legal proceedings against an Italian contractor regarding the historical cessation of production at the Bezzecca field in Italy are ongoing, with the next hearing scheduled for May 8, 2025.
The information in this article is based on a press release statement from Coro Energy PLC.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.