Yinson Annual Report 2020

323 Annual Report 2020 48. Subsequent events (continued) (b) (continued) Following the Proposed Debt Assignment, the Relevant Debt shall be owed by the relevant EHL Group Companies directly to YEPL. Pursuant to the Conditional Subscription Agreement, YEPL shall thereon subscribe for 23.0 billion EHL Shares equivalent to USD529.3 million at the Issue Price which shall be satisfied in the following manner: (i) capitalisation of the Relevant Debt; and (ii) cash consideration of USD47.0 million. The Proposed Debt Assignment and the Proposed Subscription are part of the Scheme. The Scheme is expected to result in EHL’s total debts (actual or contingent) to be reduced to only secured bank debt of less than approximately USD402.7 million. Upon completion of the Proposed Subscription and pursuant to the Conditional Options and Convertible Notes Subscription Agreement: (i) YEPL will subscribe for USD20.0 million in principal amount of Convertible Notes which can be converted into EHL Shares at the conversion price of SGD0.0317. The Convertible Notes shall bear interest of 8.1% per annum; and (ii) EHL will grant YEPL such number of Options with subscription value of USD150.0 million with each Option carrying the right to subscribe for 1 new EHL Share at the Exercise Price (as defined herein) of SGD0.0349 per EHL Share. In the event that the Proposed Debt Assignment, the Proposed Subscription and the Scheme do not complete, YEPL will have the option to purchase the Option Assets at the consideration of USD498.6 million based on the terms in the Option to Purchase Agreement. (c) On 6 March 2020, the Company announced that Globalmariner Offshore Services Sdn. Bhd. (“GMOS”) has commenced an action against Yinson Holdings Berhad (“Company”), its related company Yinson Energy Sdn Bhd (“YESB”), and 9 others (“Defendants”) including TH Heavy Engineering Berhad (“THHE”) and Floatech (L) Ltd (“FLOATECH”) in the Kuala Lumpur High Court by way of Suit No. WA-22NCVC-150-03/2020 dated 3 March 2020. GMOS is claiming the following reliefs from the Defendants on a joint and several basis: (i) RM 74,800,000.00 (20% of RM374 million of consideration from novation of Charter Contract); (ii) ADeclaration that the approval of the court obtainedon 6 February 2018 toTHHE’s Schemeof Arrangement was by reason of fraud on the court allegedly committed by the Defendants or by THHE; (iii) An order that THHE’s Scheme of Arrangement be set aside in its entirety and that consequential orders be given; (iv) An order that the Novation of the JX Nippon Contract from THHE to YESB be set aside; (v) General damages to be assessed pursuant to the alleged Defendants’ fraudulent conduct as pleaded in the Statement of Claim and for such tracing orders as may be necessary in aid thereof; (vi) Punitive and/or exemplary damages against all the Defendants to be assessed pursuant to the respective Defendants’ alleged fraudulent conduct as pleaded in the Statement of Claim; (vii) Aggravated damages to be assessed;