US shipbuilder VT Halter Marine, part of Singapore’s ST Engineering, has issued Ezra Holdings with a summons related to action it is taking against EMAS Chiyoda Subsea (ECS) over the breach of a loan agreement.
VT Halder Marine filed a civil action lawsuit against ECS on February 27 in the United States District Court with claims against ECS amounting to $3,298,153.22 and guaranteed by Ezra Holdings.
Emas Chiyoda Subsea filed for chapter 11 bankruptcy last week and around $400m of ECS’s liabilities and around $500m of loans owing to financial institutions are guaranteed by Ezra. The company said last week that it faces an immediate going concern issue “in the event claims are made against the company in relation to any or all of these guarantees.”
Ezra Holdings shares are currently trading at 1.3 Singapore cents, down more than 13%.