Singapore Default Alert : Jasper Investments Ltd


jasper 5 year priceChart : Jasper Investments 8 year price chart

Market cap SGD 63.4 mio, falling another 6.2% at the open today after they announced they could not raise funds to take delivery of their new vessel.

Sept. 1 (Bloomberg) — Jasper Cosmopolitan unable to raise enough funds to take delivery of Jasper Cosmopolitan vessel from Yiulian Shipyard.
• Yiulian exercised right to seek to sell ship
• Co. plans to work with Yiulian on sale process

Key shareholder, Morton Bay Holdings (80.77%) pulled financial support and bond holders refused to cooperate.

Jasper Explorer (Aug 19) – there were not sufficient bondholders present at the bondholders meeting to form a quorum, and no valid resolution was made. The bond agreement will remain unchanged – no postponement of the next coupon due in November. Consequently, the owner has to pay the coupon or default the company if no new contract is in place by then.

Jasper warns of potential default of US$165m senior bonds
Aug. 23 (Business Times) — Singapore
THE board of Jasper Investments Limited yesterday warned of the potential breach of financial obligations under the five-year US$165 million senior secured bonds issued by its subsidiary Jasper Explorer plc.
The breach could happen as soon as Aug 31 as Jasper Explorer had failed to secure bondholders’ approval for waivers and relief of its financial obligations.

Jasper Plc 13.5% 05/2016 bonds USD 165 mio.
jasper 13.5 bonds
Prices are holding and edging slightly higher on expectations of a default. Indicative yield at about 40% given that the bonds are secured on their main asset, the Jasper Explorer, which is booked at USD 358 mio in their 2013 financial statements. Thus there is a fair chance of cash recovery.

They had only 2 profitable years since their backdoor listing in 2006, taking over the ill fated Econ International. And if the creditors have their way, I wonder what will they be left with ?