Beleaguered Ezra raises concerns amidst ongoing bankruptcy filing of associate

It is currently seeking advice on the ECS Chapter 11 filing.

The embattled offshore and marine group Ezra Holdings has flagged concerns over the bankruptcy filing in the US of its associate firm Emas Chiyoda Subsea Group.

In a statement, the group said the filing, as well as the Norwegian Liquidation, does not deal with its charter hire liabilities relating to vessels chartered by the ECS Group.

"A substantial proportion of these liabilities have been guaranteed by the Company, which amount to approximately US$0.4b. In addition, the ECS Group currently has an aggregate of approximately US$0.5b of loans owing to financial institutions. These are guaranteed by the Company. The Company also has substantial contingent liabilities in relation to performance and/or bank guarantees granted by and/or procured by, the Company for projects undertaken by the ECS Group. Such amounts are not quantifiable as at the date of this Announcement," Ezra said, noting that it understands that the ECS Group intends to continue with those projects.

However, it said that it may constitute events of default under the charter parties, loan agreements and projects of the ECS Group. More so, the moratorium afforded under the ECS Chapter 11 Filing does not stay claims against the company in relation to these guarantees.

"In the event claims are made against the company in relation to any or all of these guarantees, the Company will face an immediate going concern issue," Ezra said.

Here's more from the group: 

The Company is currently seeking advice on the ECS Chapter 11 Filing and the Norwegian Liquidation, as well as assessing the impact of such filings on the Group. The Board also wishes to refer to the announcement released by its subsidiary, EMAS Offshore Limited, today on SGXNET in relation to the on-going initiatives by the EOL Group to refinance its financial obligations and procure additional working capital facilities. Further announcements will be made by the Company and the Board via SGXNET as and when there are any material developments in compliance with the listing rules of the Singapore Exchange Securities Trading Limited.

The Board wishes to state that the Group will continue its on-going initiatives to review all options to restructure its businesses, operations and its balance sheet. The Group will continue to engage and work closely with its key stakeholders to review all other options to achieve the best possible restructuring options for all stakeholders. In addition, the Group is considering all legal options it may have available to it to protect itself and the interests of its stakeholders in the face of the claims against it.