Triyards Holdings, part of Ezra Holdings, has become the latest name in Singapore offshore circles to enter restructuring. The offshore fabricator, with facilities in Singapore, Vietnam and Houston, said in a release today that it is currently experiencing difficulties in gaining access to new sources of liquidity. This has led the group to reassess its ability to continue or to complete its existing projects with the existing financial resources available.
Triyards admitted it is unable to meet certain loan repayments. The company has received demand letters from two of its lenders, for payment of an aggregate overdue loan installments amounting to approximately $0.8m. The group is currently in negotiations with these lenders, the failure of which could potentially result in these lenders calling for the entire outstanding loan amounting to an aggregate sum of approximately $6.9m and potential cross default on other loans granted by other financial institutions to the Singapore-listed company.
Triyards said it has now engaged a financial advisor to help put up a restructuring plan to its various stakeholders.
The news is the latest hammer blow to chairman Lee Kian Soo and his family. Lee is in the middle of a restructuring of Emas Offshore, another Ezra Holdings company. Both Ezra Holdings and subsea joint venture Emas Chiyoda Subsea are also undergoing restructuring under chapter 11 in the United States.
Triyards signalled a trading halt on the Singapore Exchange at the end of last month, which it said today would remain in place until it completes its restructuring. Triyards notched up a $63.3m net loss in its most recent quarterly results.