Marine Link
Wednesday, March 22, 2017

Emas Offshore Braces for Ezra’s Bankruptcy

March 20, 2017

Lee Kian Soo, Executive Chairman Photo: EMAS Offshore

Lee Kian Soo, Executive Chairman Photo: EMAS Offshore

 The EMAS Offshore (EOL) board of directors warns that the Chapter 11 filing of parent company Ezra Holdings  may negatively impact EOL and its subsidiaries, which could possibly lead it to face a going concern issue. EMAS Offshore Limited is a subsidiary of Ezra Holdings Limited

 
As at 30 November 2016, the Group had an aggregate amount of approximately US$170 million owing to Ezra, of which US$125 million was subject to a deferred payment over a period of three years, says a statement from the company.
 
In addition, the Group has an aggregate of approximately US$566 million of loans owing to financial institutions. The Group also has substantial charter hire liabilities valued at approximately US$231 million as at 30 November 2016, relating to charterparty agreements entered into by the Group.
 
The Ezra Chapter 11 Filing may constitute events of default under the Relevant Facilities and/or the Bank Facilities and the Charterparty Agreements and the moratorium afforded under the Ezra Chapter 11 Filing does not stay claims against the Group in relation to these Relevant Facilities and/or Bank Facilities and Charterparty Agreements guaranteed or secured by Ezra. 
 
However, the Group is not aware of any demand made by financial institutions in relation to any of the Bank Facilities as a result of the Ezra Chapter 11 Filing.
 
Arising from the above, the Ezra Chapter 11 Filing may have a negative impact on the Group. The Company is therefore currently seeking advice on the Ezra Chapter 11 Filing, as well as assessing the impact of such filing on the Group and on the Group's ongoing initiatives to refinance its financial obligations and liabilities and the procurement of additional working capital facilities. 
 
The Group will work closely with its principal bankers to review all options to continue its Ongoing Initiatives. As previously disclosed by EOL in its unaudited financial information for the first quarter of financial year ended 30 November 2016 and the announcement made on 2 March 2017, in the event that these efforts do not achieve a favourable and timely outcome, the Group will be faced with a going concern issue.
 
Further announcements will be made by the Company and the Board via SGXNET and Newsweb as and when there are any material developments in compliance with the listing rules of the Singapore Exchange Securities Trading Limited and the Norwegian Securities Trading Act.
 
Maritime Reporter Magazine Cover Mar 2017 - The Green Marine Technology Edition

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Subscribe
Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News