Singapore’s Ezra Holdings was served yesterday with a statutory demand from Forland Subsea over NOK25.5m ($3.09m) owed to the Norwegian company for the charter of subsea vessel Lewek Inspector.
.EMAS Chiyoda Subsea, the subsea venture 40% owned by Ezra, defaulted on the charter in December last year.
The contract was guaranteed by Ezra Holdings, and so the statutory demand issued by Forland gives the company three weeks to pay up or Forland will apply for Ezra Holdings to be wound up by the High Court of Singapore.
This latest legal challenge is a huge blow to the SGX-listed company. It is also facing a legal battle in Texas with Bibby Offshore over unpaid debts, and on Friday admitted it might have to write off $170m from its investments in the EMAS Chiyoda Subsea joint venture.
Japanese partners Chiyoda and NYK have already issued similar writedown warnings at the end of last month.
Ezra shares plummeted in trading Monday on the writedown warnings, down 37.5% to close on 3 cents.
Another SWIBER moment & effect for Singapore offshore companies and cronies…no doubt this will impact all of the layers and layers of creativity that propped up these smoke and mirror groups…
..any Further Developments on Pacific Radiance ? I understand a Director was called in for a “coffee session” with the commercial authorities..
Ong Ong – pray do tell more!