POSH warns on troubled joint venture with Ezion

Robert Kuok’s Singapore-listed PACC Offshore Services Holdings (POSH) could be hit with an impairment charge of up to $42m, following the default of its 50%-owned joint venture on $27.6m worth of debt.

The joint venture is POSH Terasea, which the company operates with troubled Ezion Holdings as well as Seabridge Marine Holdings.

The loan is secured by five anchor handling tugs.

“We regret the circumstances as POSH had been committed to exploring options with all parties to enable the POSH Terasea JV to meet its obligations towards lenders. POSH does not expect any material impact to its operating cash flow and continues to have sufficient debt headroom for growth,” a POSH company spokesperson said today.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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