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    Ezra Holdings Chapter 11 process of concern to Emas Offshore

    Company News // March 21, 2017

    Referring to the announcement released by the company's ultimate holding company, Ezra Holdings Limited, that it has filed for Chapter 11 bankruptcy protection in the US, Emas Offshore says that as of 30 November 2016, the group had an aggregate amount of approximately US$170 million owing to Ezra Holdings, of which US$125 million was subject to a deferred payment over a period of three years.

    In addition, the group has an aggregate of approximately US$566 million of loans owing to financial institutions, of which an aggregate of approximately US$242 million of loans are guaranteed or secured by securities provided by Ezra and an aggregate of approximately US$193 million of loans are jointly guaranteed or secured by securities provided by Ezra and the group.

    The Emas Offshore group also has substantial charter hire liabilities valued at approximately US$231 million as at 30 November 2016, relating to charterparty agreements entered into by the group of which an aggregate of approximately US$119 million are guaranteed solely by Ezra and an aggregate of approximately US$58 million are jointly guaranteed by Ezra and the group.

    "The Ezra Chapter 11 filing may constitute events of default under the relevant facilities and/or the bank facilities and the charterparty agreements and the moratorium afforded under the Ezra Chapter 11 Filing does not stay claims against the group in relation to these facilities and/or bank facilities and charterparty agreements guaranteed or secured by Ezra," said Emas Offshore.

    "However, the group is not aware of any demand made by financial institutions in relation to any of the bank facilities as a result of the Ezra Chapter 11 Filing."

    "Arising from the above, the Ezra Chapter 11 Filing may have a negative impact on the group," said Emas Offshore.

    The company is therefore currently seeking advice on the Ezra Chapter 11 fFiling, as well as assessing the impact of such filing on the group and on the group's ongoing initiatives to refinance its financial obligations and liabilities and the procurement of additional working capital facilities.

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