Ezion Sells Offshore Vessel to Astro

Singapore’s troubled liftboat operator Ezion Holdings has signed a memorandum of agreement to sell its offshore vessel Teras Genesis to the offshore and maritime chartering and brokerage company Astro Offshore.

Ezion, in an attempt to reduce cash burn and shift focus to liftboats, has agreed to sell the vessel for cash consideration of US$2.25 million.

The sale is expected to generate a gain of US$858,000 for Ezion, based on the vessel's US$1.39 million carrying value as at end-September.

Ezion will use the sale proceeds to repay its secured bank loans. The mortgage over the vessel will be discharged after the sale.

The debt-stricken offshore and marine group said in a stock exchange announcement: "(The) disposal is in line with the group's plan to focus on its liftboats and reduce burn rates of the service rigs and vessels. This will also enable the group to improve the efficient use of its capital and cash flow."