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EMGS writes down $2m after its Mexican bank goes into liquidation

Oslo-listed Electromagnetic Geoservices (EMGS) said on Thursday it has around $2.1m frozen in Mexican bank Accendo Banco that is currently under liquidation after its banking license was revoked by the country’s regulators.

The Trondheim-based seismic specialist said it expects to recover at least part of the amount in the form of dividends from the liquidation process, but that it can not assess either the recovery amount or when such a dividend, if any, will be paid.

“Based on the highly limited information available to the company, and the uncertainty pertaining to the amount and timing of liquidation dividends, if any, EMGS will make an impairment of approximately $2m,” the company said in Oslo Exchange filing.

Accendo Bank is not EMGS’ main bank in Mexico but was used to facilitate certain day-to-day intra group transactions. Excluding the cash held with Accendo Bank, the company has around $14.8m in unaudited free cash. At the end of the third quarter 2021, it had one vessel in operation and expected multi-client revenues of around $4m.

Adis Ajdin

Adis is an experienced news reporter with a backgroud in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
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