EMAS Offshore to implement restructuring via scheme of arrangement

By Caroline Salls

Pittsburgh, Sept. 5 – EMAS Offshore Ltd.’s board of directors intends to implement a proposed restructuring through the filing of a scheme of arrangement under the Companies Act in Singapore, according to a news release.

As previously reported, the company entered into a binding term sheet with potential investors Baker Technology Ltd. wholly owned subsidiary BT Investment Pte. Ltd. (BTI) and Point Hope Pte. Ltd. as part of the financial restructuring of the EMAS group.

EMAS said the restructuring of its existing secured and unsecured debt and any outstanding debenture and contingent liabilities, is designed 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 potential investors also want the key management of the EOL Group to be retained to ensure that the operations of the group will not be impacted during and after the restructuring, according to the release.

The company said the scheme will deal with the settlement and discharge of outstanding debts and the issuance of new shares in EMAS for subscription by each of the potential investors.

EMAS said the term sheet is subject to satisfactory agreement to final documentation and definitive agreements by the respective parties to the entire restructuring exercise and the receipt of all necessary governmental and regulatory approvals, consents and permits.

According to the release, the total investment amount will be $50 million for the whole restructuring exercise, with each of BTI and Point Hope individually investing an amount of $25 million.

The investment amount will result in BTI and Point receiving at least a majority of the share capital of EMAS Offshore.

The transactions require the receipt of necessary corporate approvals from the potential investors shareholders and a court order sanctioning the scheme.

The term sheet requires the scheme application to be filed by Oct. 30.

EMAS Offshore is a subsidiary of Ezra Holdings Inc. Ezra, a Singapore-based provider of offshore support for the oil and gas industry, filed bankruptcy on March 19 in the U.S. Bankruptcy Court for the Southern District of New York. The Chapter 11 case number is 17-22405.

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