Banks say no to Emas Offshore plan but keep talking

DBS and UOB have rejected a restructuring plan put forward by Emas Offshore but dialogue continues as a solution is sought to the troubled firm’s financial situation. 

In an update about the company’s proposed restructuring effort, Emas Offshore said that, on 11 January 2018, DBS Bank Ltd and United Overseas Bank Limited filed joint affidavits in response to scheme applications filed by the offshore vessel company and its wholly-owned subsidiary, EMAS Offshore Pte Ltd.

DBS Bank and UOB expressed the view that they were not prepared to agree to the terms of the restructuring proposals as they currently stand. However, DBS Bank and UOB are, at this stage, prepared to continue discussions with the companies on a revised proposal or any other proposal from investors.

The hearing date for the scheme applications is 19 March 2018. In the meantime, the company is engaged in discussions with DBS Bank and UOB and with investors to come to a consensus on a revised proposal.

The board of directors of Emas Offshore also recently confirmed that Captain Adarash Kumar has tendered his resignation as an executive director and chief executive officer, and his last day of service will be on 6 April 2018.

In September 2017, Emas Offshore signed term sheets with ‘white knights’ who said they would make a cash investment in the company. Emas Offshore said the companies involved are BT Investment Pte Ltd (BTI), a wholly owned subsidiary of Baker Technology Limited, and Point Hope Pte Ltd, but noted that it still needed to undertake a restructuring of its secured and unsecured liabilities.