EMAS Offshore says potential investor conducting due diligence over US$73.3 mil investment

SINGAPORE (Oct 26): A potential white knight might be coming to the rescue of EMAS Offshore which is undergoing financial restructuring with an investment of US$73.3 million ($101.4 million).

EMAS Offshore says the company and its wholly-owned subsidiary, Emas Offshore (EOPL) has entered into a non-binding term sheet with investor Udenna Corporation.

Udenna is the majority shareholder of Chelsea Logistics Holdings Corporation, which through its wholly owned subsidiaries, is engaged in the maritime conveyance and carriage of petroleum products, general cargos and passengers within the Philippines territorial waters and the high seas.

Under the non-binding term sheet, Udenna will have an exclusivity of five weeks from Oct 29 to conclude a formal binding agreement for the proposed transaction.

The US$73.3 million will be used to acquired certain vessels owned by the group that are currently secured to various bank lenders of the group as well as for an investment into EOPL.

However, EMAS Offshore warns shareholders there is no certainty that the proposed transaction will be completed.

On Aug 6, EMAS Offshore, a unit of Ezra Holdings, announced the moratoria over the company and two of its wholly owned subsidiaries had expired, after discussions with potential investors and key lenders failed to deliver a suitable restructuring proposal.

A unit of Ezra Holdings, EMAS Offshore is dual-listed in Singapore and Norway. Trading of EMAS Offshore shares on the Singapore Exchange has been suspended since March last year.

On Aug 16, the Oslo Stock Exchange passed a resolution to delist EMAS Offshore with effect from Sept 28.