Emas Offshore seeks more time for refinancing

Emas Offshore has sought for an extension from its bankers to wrap up documentation needed for refinancing of its financial obligations and the provision of additional working capital facilities. 

Emas Offshore Limited (EOL) announced on October 30, 2016, the group has reached in principle agreements with the substantial majority of its principal bankers on the refinancing of its financial obligations and the provision of additional working capital facilities.

The board of the company stated on Thursday, March 2 that the completion of the documentation for the ongoing initiatives, which were originally targeted to be concluded before the end of the second quarter of financial year 2017, has now been delayed. The company has sought an extension of time from its principal bankers to complete the documentation for the ongoing initiatives.

The board also referred to the announcement released on Thursday by Emas Offshore’s ultimate holding company, Ezra Holdings, in relation to its associate company Emas Chiyoda Subsea. In the announcement, Ezra stated that Emas Chiyoda has together with certain subsidiaries voluntarily filed a petition for relief under Chapter 11 of the United States Bankruptcy Code to obtain the protection of the court while a restructuring of Emas Chiyoda Subsea and its subsidiaries is being pursued. In addition, Emas Chiyoda placed EMAS-AMC, its Norway-based wholly owned subsidiary, under voluntary liquidation in Norway.

As disclosed in Ezra’s announcement, the Emas Chiyoda Chapter 11 filing may have a negative impact on Ezra and its subsidiaries and associated companies, including the group. The company is therefore currently seeking advice on the Emas Chiyoda Chapter 11 Filing, as well as assessing the impact of such filing on the group.

Emas Offshore stated that the group will work closely with its principal bankers to review all options to finalize the provision of additional working capital facilities as well as the documentation of the refinancing of its financial obligations. As previously disclosed by Emas Offshore in its unaudited financial information for the first quarter of financial year ended November 30, 2016, in the event that these efforts do not achieve a favorable and timely outcome, the group will be faced with a going concern issue.

The company advised its shareholders to exercise caution when trading in the company’s shares as there is no certainty or assurance that the definitive agreements for the ongoing initiatives will be entered into or the ongoing initiatives will be undertaken or completed at all.

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