On 16 December 2016, Emeco announced that after continued discussions, noteholders who voted against the creditors’ scheme have now committed to support the transaction. On 3 January 2017 the company announced it had signed the revised restructuring agreement (RSA)
Emeco plans to merge with Orionstone Holdings and Andy's Earthmovers, then recapitalise the combined entity. Details and commentary on the transaction can be found here.
The new proposal is broadly similar, however with the following changes:
- The sub underwriting of the remaining $10m of the company’s $20m pro rata rights issue
- Three directors will be nominated to the board by Orionstone creditors, Emeco noteholders who signed the RSA, and the noteholders who are sub underwriting part of the rights issue
- Emeco noteholders will hold 31% of the combined group (previously 34%) plus the issue of new shares
The transaction will require the approval of Emeco shareholders at an extraordinary general meeting and approval of Emeco creditors at a further creditors’ scheme meeting. These meetings are expected to take place in March 2017.