Ezra, EMAS Chiyoda administrator cap guaranty claims at $56 million

By Caroline Salls

Pittsburgh, Dec. 21 – Ezra Holdings Ltd. requested court approval of a settlement reached with the plan administrator for some affiliated debtors of EMAS Chiyoda Subsea Ltd. that caps the amount of Ezra guaranty claims at $56 million, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the Southern District of New York.

Ezra said it filed a number of claims in EMAS Chiyoda’s Chapter 11 case.

In addition, in its former role as joint-venture parent company of the EMAS Chiyoda debtors, Ezra guaranteed a number of obligations of one or more EMAS Chiyoda debtors to their creditors in connection with financing activities and performance under project contracts.

According to the motion, Ezra filed 36 guaranty claims totaling in excess of $3 billion.

After confirmation of the EMAS Chiyoda Chapter 11 plan, the plan administrator objected to Ezra’s claims, arguing that some counterparties to the guaranteed obligations had not filed claims in Ezra’s Chapter 11 cases, meaning those claims could no longer be asserted against Ezra or the EMAS Chiyoda debtors.

In addition, the administrator said Ezra had no ability to pay the guaranteed obligations in the amount claimed, and that the claims should be disallowed as contingent claims for reimbursement.

A hearing is scheduled for Jan. 22.

Ezra, a Singapore-based provider of offshore support for the oil and gas industry, filed bankruptcy on March 19, 2017. The Chapter 11 case number is 17-22405.

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