Ezra shares slump after it flags exposure to affiliate seeking U.S. bankruptcy

Ezra Holdings

03/03/2017 10:47

SINGAPORE, March 3 (Reuters) - Shares of Singapore's Ezra 
Holdings Ltd  EZRA.SI  fell by a fifth on Friday after it 
disclosed it had provided guarantees on nearly $900 million in 
liabilities and loans of Emas Chiyoda Subsea Ltd (ECS), an 
affiliate that filed for U.S. bankruptcy. 
    Ezra is one of several Singapore offshore and marine 
services firms that have been hit by a downturn in oil prices in 
2014, 2015 and 2016. 
    Singapore banks, which were caught off-guard by the collapse 
of oilfield services company Swiber Holdings  SWBR.SI  last 
year, have taken a hit as companies in the sector restructure 
debt.  urn:newsml:reuters.com:*:nL4N1G05ZA 
    Ezra said in a statement late on Thursday that it had 
guaranteed a substantial portion of liabilities relating to 
vessels chartered by ECS, amounting to about $400 million. 
Additionally, it had guaranteed about $500 million in loans owed 
by ECS to financial institutions. 
    It also said it had substantial contingent liabilities 
related to certain ECS projects.  urn:newsml:reuters.com:*:nSNZ6K70Wd 
    ECS filed for U.S. bankruptcy earlier this week. 
 urn:newsml:reuters.com:*:nL2N1GD118 
    "In the event claims are made against the company in 
relation to any or all of these guarantees, the company will 
face an immediate going concern issue," said Ezra, which has 
been trying to restructure its operations and balance sheet. 
    "The group is considering all legal options it may have 
available to it to protect itself and the interests of its 
stakeholders in the face of the claims against it," it said. 
    Ezra shares ended down 21 percent on Friday at S$0.015. The 
company's stock has lost $1.5 billion in market value since a 
peak in 2007. 
 ($1=1.41 Singapore dollars) 
 
 (Reporting by Aradhana Aravindan; Editing by Neil Fullick) 
 ((aradhana.aravindan@thomsonreuters.com; +65 6403 5659; Reuters 
Messaging: aradhana.aravindan.thomsonreuters.com@reuters.net)) 
 
Keywords: EZRA HLDGS GUARANTEES/