No Signboard: Restructuring may include debt-for-equity swap

The No Signboard Seafood outlet at VivoCity mall in Singapore; taken in 2018.The No Signboard Seafood outlet at VivoCity mall in Singapore; taken in 2018.

Troubled No Signboard Holdings‘ proposed restructuring may see creditors’ outstanding debts resolved by debt-for-equity conversion, the iconic Singapore chilli crab restauranteur said in a filing to SGX Wednesday.

Under the proposed debt-equity conversion, the creditors and existing shareholders may end up with 25 percent of No Signboard’s enlarged share capital, while 75 percent would be allotted to Gazelle Ventures, a family office-owned venture which has proposed an up to S$5 million investment in the company, the filing said.

The proposed structure has not been finalized and talks are ongoing with Gazelle Ventures and Deloitte & Touche Financial Advisory Services, the program manager, No Signboard said.

No Signboard said the proposed S$450,000 emergency funding from Gazelle Ventures under the proposed deal is “critical” to meeting immediate short-term funding needs for working capital.

“The investor is the only potential investor that the board has negotiated thus far that is willing to extend funding on an emergency basis, and such emergency funding is critical to the company’s and the group’s continued operations and survival, given that the group is projected to exhaust its current cash balances in the immediate term,” No Signboard said.

“In the event the company is unable to secure any alternative short-term financing, the group will not be in a position to continue its operations,” No Signboard said.

The Covid-19 pandemic has badly hit the iconic Singapore chilli crab maker, with lockdowns closing its outlets temporarily, as well as the impact from restrictions on group sizes in restaurants, and border controls keeping most tourists and travellers out of the city-state.