Ezra Holdings at mercy of Emas Chiyoda Subsea creditors

Ezra Holdings at mercy of Emas Chiyoda Subsea creditors

Singapore’s Ezra Holdings has admitted that it faces a possible wind up application from Norway’s Forland Subsea.

Forland issued Ezra with a statutory demand to pay NOK25.5m ($3.09m) owed by Emas Chiyoda Subsea for the charter of the subsea vessel Lewek Inspector.

EMAS Chiyoda Subsea defaulted on the charter in December last year and this week filed for Chapter 11 in the US bankruptcy court.

The contract was guaranteed by Ezra Holdings, and on February 6 Forland demanded that payment be made within three weeks or it would apply for Ezra Holdings to be wound up by the High Court of Singapore.

Ezra put out a statement on the Singapore Exchange last night which said that the money owed to Forland had not yet been paid.

Around $400m of Emas Chiyoda Subsea’s liabilities and around $500m of loans owing to financial institutions are guaranteed by Ezra Holdings.

“These creditors are at liberty to apply for the company to be wound up by the High Court of Singapore upon the ground…that the company is unable to pay its debts. Notwithstanding the foregoing, the company is continuing its efforts to engage these creditors in relation to these claims,” the statement said.

“In the event claims are made against the company in relation to any or all of these guarantees, the company will face an immediate going concern issue,” it added.

Frode Bjørn Forland, CEO of Forland Subsea, told Splash today that he’s not yet able to confirm whether the company will press ahead with its threat to wind up Ezra Holdings.

Ezra’s shares, which commenced trading again today after three days under a trading halt, dropped more than 21% to just 1.5 Singapore cents.

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.

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1 Comment

  1. Don Johnson
    March 5, 2017 at 10:58 pm

    Forland Subsea just pressed for payment, as did two others.