Offshore services provider Emas Offshore has started restructuring process in Singapore and entered into an agreement with potential investors who will put in $50 million into the company as part of its financial restructuring.
The restructuring application was filed at the end of August.
With this application, Emas Offshore, together with its subsidiaries Emas Offshore Pte Ltd and Emas Offshore Services, has asked the court to stop any resolution for the winding up of the companies, the appointment of a receiver or manager over any property or undertaking of the companies, and any legal proceedings for a period of six months.
Separately, Emas revealed in an Oslo Stock Exchange filing on Monday it had entered into a binding term sheet with unrelated third-party investors BT Investment Pte. Ltd. (BTI), a subsidiary of Baker Technology Limited, and Point Hope related to the proposed cash investment.
Emas Offshore intends to undertake a restructuring of its existing secured and unsecured liabilities as well as any outstanding obligations including without limitation debentures and any contingent liabilities to substantially deleverage the company’s balance sheet and strengthen its working capital position to enable the group to continue as a going concern, the company explained on Monday.
These potential investors intend to keep the key management of the Emas Offshore to ensure that the operations of the group are not impacted during and after the restructuring.
The total investment amount is $50 million for the whole and complete restructuring, with BTI and Point Hope individually investing an amount of $25 million each. The investment will result in the potential investors receiving at least a majority of the share capital of Emas Offshore Limited on a fully diluted basis.
The term sheet is subject to customary due diligence, final agreement and documentation. It may also be terminated, and the restructuring may be abandoned, at any time prior to closing.
Offshore Energy Today Staff