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it has around $2.1m frozen in Mexican bank Accendo Banco that is currently under liquidation after its banking license was revoked by the country’s regulators.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.