Ezion Holdings takes action against SwisscoCompany News // November 18, 2016
Troubled offshore vessel owner and operator Swissco Holdings says further actions have been launched against it by companies that claim it owes them money. Swissco has rejected the claims.
On 9 and 10 November, the board of the company’s subsidiary, Scott and English Energy Pte Ltd (S&E) received three statutory demands pursuant to Singapore’s Companies Act from Ezion Investments Pte Ltd. The demands relate to claims arising from various joint ventures entered into between S&E and Ezion for the ownership and management of offshore rigs.
Under the demands, Ezion has asserted it is owed the sums of US$236,695.94, US$151,335.63, and US$134,081.31, these being corporate guarantee fees due from S&E to Ezion for procuring certain corporate guarantees in respect of liabilities of the joint ventures. Ezion stated that unless the sums are paid, secured, or compounded to its satisfaction within three weeks of the dates of the demands, it will be entitled to use the Companies Act to have S&E wound up. S&E’s position is that the corporate guarantee fees are not due and payable to Ezion. It considers that it has counterclaims against Ezion and these outweigh and fully set off any amounts in relation to the alleged guarantee fees that may be due to Ezion. The group is in the process of taking further legal advice on Ezion’s claims and S&E’s counterclaims.
Swissco has also received two letters dated 10 November 2016 from holders of Redeemable Exchangeable Preference Shares (REPS) in two of its group companies, S&E Offshore Investments Pte Ltd and S&E Offshore Investments 2 Pte Ltd. The letters allege there has been a breach of joint venture agreements dated 10 October 2014 arising from the group’s decision to scrap certain rigs as well as disputes and legal proceedings commenced by X-Drill Holdings Inc. The letters further alleged that a ‘liquidation event’ has arisen pursuant to which S&E Offshore Investments Pte Ltd and S&E Offshore Investments 2 Pte Ltd are required to redeem outstanding REPS and that the company is required to repay any such outstanding sums due and owing. Swissco said it is also taking legal advice on these matters.