Emas Chiyoda Subsea, a player in the subsea sector, announced on Tuesday that EMAS-AMC AS, its Norway-based wholly owned subsidiary, has been placed under members’ voluntary liquidation in Norway.
Emas Chiyoda Subsea was formed in early 2016 through an investment by the Japanese Chiyoda Corporation into Ezra’s subsea services business, Emas AMC. In September 2016, Japan’s Nippon Yusen Kabushiki Kaisha (NYK) bought a 25 percent share of Emas Chiyoda Subsea, taking 10% from Ezra and 15% from Chiyoda.
This announcement of liquidation was made separately to Emas Chiyoda’s previous announcement on Tuesday to seek financial restructuring through chapter 11 of U.S. Bankruptcy Code.
In connection with the filing for chapter 11, Emas Chiyoda received a commitment on an up to $90 million financing facility from Chiyoda Corporation and Subsea 7. The restructuring will provide Emas Chiyoda with an opportunity to focus on strengthening its financial and operational systems, enhancing its efforts to weather the current challenges.
However, Emas Chiyoda clarified that EMAS-AMC AS has not filed for such protection.
The liquidation of EMAS-AMC was independently decided by the board of directors of EMAS-AMC to be in the best interest of all EMAS-AMC’s stakeholders as EMAS-AMC’s financial position has been significantly impacted by the global oil and gas downturn, and there are limited prospects for the company in Norway in the foreseeable future, Emas Chiyoda explained.
In line with the company’s restructuring strategy, Emas Chiyoda said it will continue to engage and work closely with all creditors to achieve the best possible consensual restructuring outcome for all interested parties. The company added it intends to establish a foundation for long-term stability.
Offshore Energy Today Staff