Singapore's Ezra Holdings files for US bankruptcy
19 Mar 2017 - 23:17
New York: Oilfield services firm Ezra Holdings Ltd of Singapore filed for US Chapter 11 bankruptcy, blaming a prolonged slump in the energy industry.
The company had been trying to restructure and said in February it faced a "going concern issue" if it did achieve a favourable outcome.
Ezra is one of several Singapore offshore and marine services firms that have been hit by a downturn in oil prices since in 2014.
The company's stock lost a fifth of its value in early March after it disclosed it had provided guarantees on nearly $900m in liabilities and loans of Emas Chiyoda Subsea, an affiliate the also filed for US bankruptcy.
"Oversupply of offshore supply vessels along with the influx of newly built vessels resulting in low competitive charter rates compounded the financial difficulties of Ezra’s business divisions," said Robin Chiu, the company's chief restructuring officer, in a court filing.
The company said it had unsecured loans of $272m, owed to DBS Bank, $184m owed to Oversea-Chinese Banking Corp Ltd and $108m to a Singapore affiliate of HSBC Plc.