Wind up application filed against EMAS AMC, Ezra says

Logistics provider Necotrans Singapore filed an application to wind up Ezra Holdings’ associate company EMAS AMC with the High Court of Singapore on February 6.

EMAS AMC is a wholly owned unit of Ezra’s associate Emas Chiyoda Subsea, which is owned 40% by Ezra, 35% by Chiyoda and 25% by NYK.

Ezra said in a Singapore stock exchange filing on Tuesday that it was made aware of the application on February 13, following an advertisement published in the Straits Times newspaper.

According to the company, the winding up application against EMAS AMC has been fixed for hearing on March 3, 2017.

EMAS AMC is currently seeking advice on the application while Ezra is assessing the impact of the wind up against EMAS AMC on Ezra as well as on its subsidiaries. In the meantime, Ezra added, the company will hold discussions with relevant parties.

Ezra is already under pressure due to EMAS AMC’s missed payment for the hire of Forland’s Lewek Inspector vessel. EMAS AMC’s obligations under the charter party were guaranteed by Ezra. No longer wanting to wait for the payment, Forland served Ezra a statutory demand seeking payments owed for the vessel charter earlier in February,

Forland gave Ezra three weeks to make the payment, or otherwise, its solicitors would move for Ezra to be wound up by the court.

EMAS also owes payments to Ocean Yield for the vessel Lewek Connector for which the company in December asked for a standstill agreement for December 2016 and January 2017. However, earlier this week, the owner terminated the charter “to protect the company’s legal interest.”

Related to the charter termination, Ezra said it is open to entering into discussions with Ocean Yield.

First financial quarter delays

Ezra made an application to Singapore Exchange Securities Trading Limited (SGX-ST) seeking a 30-day extension to announce the Group’s unaudited Financial Statement for the first financial quarter ended November 30, 2016.

The company had since made a further application to SGXST seeking a 60-day extension, instead of a 30-day extension, to announce the 1Q results.

Ezra is currently in discussions with various stakeholders and is consolidating its funding requirements. The company said in Tuesday’s SGX filing that if this effort does not achieve a favorable and timely outcome, the Group would be faced with “a going concern issue.”

The company added that the outcome of the discussions might materially impact businesses and operations of the Group, and in turn, its Financial Statement for 1Q 2017.

Offshore Energy Today Staff