Ezion Holdings looks like it has become the latest Singapore-listed casualty of the offshore downturn, suspending its shares today while it looks for a restructuring deal with banks and creditors.
Releasing its first half results for 2017, the company posted a loss of $15.3m and immediately set about suspending trading of its shares on the Singapore exchange.
In a letter to shareholders, Ezion Chairman Dr Wang Kai Yuen and CEO Chew Thiam Keng said that the company’s results reflected a difficult first half and the next 12 months pose severe threats to the group.
Cashflow was highlighted as a key concern by Wang and Chew, who said it threatened the viability of the company. Ezion has liabilities of over $1.6bn and around $340m of debt obligations payable in the next year.
“It is therefore our intention to solve the problem comprehensively from all aspects and we will need to work together with all our stakeholders to discuss financing options. While the initial responses from our principal lenders appear positive, the details will need to be finalised. The outcome of the above discussions will very much determine if Ezion will survive the current crisis and emerge stronger than before,” shareholders were told.
A management team reorganisation was also on the cards, the liftboat specialist said.
“With your understanding and prayers, we hope to achieve a favourable outcome that will be beneficial for all parties concerned. We will keep you updated of subsequent developments. Grace and peace of God be with you all,” the letter concluded.
Ezion shares closed at S$0.20 on Friday, having traded as high as $2 in 2014.