Oslo delisting warning ‘detrimental’ to Emas restructuring efforts

Oslo Stock Exchange has decided to delist the shares of Emas Offshore from trading. The offshore services provider considers this decision detrimental to its ongoing restructuring efforts.

The Oslo Stock Exchange released a statement on Monday, February 19 announcing its intention to delist the shares of Emas Offshore Limited with effect from April 27, 2018.

The decision was based chiefly on the company’s inability to disclose financial information within the prescribed deadlines under the Oslo Stock Exchange listing rules. In the meantime, the company remains listed on the Oslo Stock Exchange.

The exchange explained its move by saying that Emas is not in a position to comply with its financial reporting obligations and therefore not suitable for listing on the Oslo Stock Exchange. The company has on several occasions not published its financial reports timely.

According to the exchange, the company published the audited annual report for the financial year 2016 and the half-yearly report for the first six months of 2017 with significant delay. In addition, the company has not published the audited annual report for 2017 within the stipulated deadline.

The Oslo Stock Exchange’s decision can be appealed to the Stock Exchange Appeals Committee by March 5, 2018. If an appeal is successful, the company remains listed on the Oslo Stock Exchange.

Restructuring progress

In its response to the Oslo Stock Exchange’s decision, Emas said it comes at a time where the group’s restructuring exercise has made significant progress. The company, together with the other EOL Restructuring Group companies, has obtained the High Court of the Republic of Singapore’s leave on February 15, 2018 to convene a creditors’ meeting for the purpose of considering and, if thought fit, approving a scheme of arrangement proposed to be made between the company and its creditors; as well as an extension of the existing moratorium until June 30, 2018 or further order.

The indicative restructuring proposal put forward by the company has obtained initial expressions of support from some of the largest secured creditors of the EOL Group. The company intends to move forward as quickly as practicable to bring its restructuring process to a successful close, in the light of this positive development, Emas said.

The company is concurrently working closely with its auditors to finalize the delayed financial information.

“It is accordingly the company’s view that the Oslo Stock Exchange’s decision is not consistent with the progress already made, and in particular the restructuring proposal that the company has made which has the indicative support of its major secured creditors. The company now has a real prospect of a return to viability and the Oslo Stock Exchange’s decision is detrimental to these intensive ongoing restructuring efforts and hence not in the interest of the company’s shareholders,” Emas said in the statement.

The company intends to pursue an appeal on the Oslo Stock Exchange’s decision and will continue to work closely with all stakeholders to bring the restructuring to its fruition. It is the company’s belief and hope that, when all the relevant facts are put before the Oslo Stock Exchange, its decision will be reversed, Emas concluded.