Join our crew and become one of the 104,742 members that receive our newsletter.

Bankrupt: Singapore’s Ezra Holdings Files Chapter 11

Bankrupt: Singapore’s Ezra Holdings Files Chapter 11

Reuters
Total Views: 57
March 18, 2017

Photo credit: Ezra Holdings
Photo credit: Ezra Holdings

by Tom Hals (Bloomberg) Oilfield services firm Ezra Holdings Ltd (EZRA.SI) of Singapore filed for U.S. Chapter 11 bankruptcy on Saturday, blaming a prolonged slump in the energy industry.

The company had been trying to restructure and said in February it faced a “going concern issue” if it did achieve a favorable outcome.

Viking-Raid-Book-by-Matt-McCleary
Related Book: Viking Raid by Matthew McCleery
Ezra is one of several Singapore offshore and marine services firms that have been hit by a downturn in oil prices since in 2014.

The company’s stock lost a fifth of its value in early March after it disclosed it had provided guarantees on nearly $900 million in liabilities and loans of Emas Chiyoda Subsea Ltd, an affiliate the also filed for U.S. bankruptcy.

“Oversupply of offshore supply vessels along with the influx of newly built vessels resulting in low competitive charter rates compounded the financial difficulties of Ezra’s business divisions,” said Robin Chiu, the company’s chief restructuring officer, in a court filing.

The company said it had unsecured loans of $272 million, owed to DBS Bank Ltd (DBSM_pc.SI), $184 million owed to Oversea-Chinese Banking Corp Ltd (OCBC.SI) and $108 million to a Singapore affiliate of HSBC Plc (HSBA.L).

The company said in a court filing in the U.S. Bankruptcy Court in New York that it had up to $1 billion in assets and up to $500 million in liabilities.

(Reporting by Tom Hals in Wilmington, Delaware; Editing by Dan Grebler)

© 2017 Thomson Reuters. All rights reserved.

Unlock Exclusive Insights Today!

Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.

Sign Up
Back to Main
polygon icon polygon icon

Why Join the gCaptain Club?

Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.

Sign Up
close

JOIN OUR CREW

Maritime and offshore news trusted by our 104,742 members delivered daily straight to your inbox.

gCaptain’s full coverage of the maritime shipping industry, including containerships, tankers, dry bulk, LNG, breakbulk and more.