Emas hit with termination notices for three vessels

Offshore services provider Emas Offshore has received bareboat charter terminations for two platform suppliers and one anchor handling tug and supply vessel. 

The notices of termination are for the fire-fighting platform supply vessel (PSV) Lewek Ariel, for the PSV Lewek Lynx, and for the AHTS vessel Lewek Lynx, Emas said on Tuesday.

The vessels are owned by Marina Morganite Shipping, Marina Moss Shipping, and Marina Tanzanite Shipping and the charters are dated 2011, 2014, and 2011, respectively.

Emas Offshore’s parent company, Ezra Holdings, was a guarantor for all three charters. All three charters were terminated due to various termination events and breaches of material obligations.

The demands stated by the owners in notices of termination include redelivery at safe anchorage in Singapore or such port or place required by the owners, delivery of all relevant documents and information relating to the vessels to enable the owners to take redelivery effectively; and the charterer should agree to the joint appointment of a surveyor nominated by the owners, so as to determine and agree to the condition of the vessels at the time of redelivery.

Emas is now seeking legal advice in respect of three notices.

In talks for new arrangements

Notwithstanding the notices for Ariel and Alkaid, Emas is in discussions with the two owners well as the owners’ principal financier to enter into a new commercial arrangement in respect of these vessels. The objective of this arrangement is to allow for a mutually beneficial arrangement such that the group will continue to manage and market the vessels for chartering contracts on behalf of the owners and their principal financiers, while ensuring that the existing contracts with the end-charterers of the vessels would continue to subsist and not be impacted.

Pending the outcome of the on-going discussions, there is an informal standstill in respect of the termination of the Ariel charter and the Alkaid charter and the group is continuing to fulfill its contractual obligations under the existing contracts with the end-charterers of the vessels with no disruption to the group’s charter operations.

When it comes to the third vessel, the Lewek Lynx, it is currently off-hire. Emas is also in discussions with the owner and its principal financier to effect re-delivery of the vessel and to enter into a new commercial arrangement such that the group will continue to manage and market the vessel for chartering contracts and for sale on behalf of the owner and its principal financier.

Offshore Energy Today Staff