SINGAPORE, Mar. 3, 2017 /PRNewswire/ -- The Board of Directors (the "Board") of EMAS Offshore Limited ("EOL" or the "Company", together with its subsidiaries and associated companies, the "Group") refers to the announcement released by the Company dated 30 October 2016 where the Company announced that the Group has reached in- principle agreements with the substantial majority of its principal bankers on the refinancing of its financial obligations and the provision of additional working capital facilities (the "Ongoing Initiatives").
The Board wishes to state that the completion of the documentation for the Ongoing Initiatives, which were originally targeted to be concluded before the end of the second quarter of financial year 2017, has now been delayed. The Company has sought an extension of time from its principal bankers to complete the documentation for the Ongoing Initiatives.
The Board also refers to the announcement dated today ("Ezra's ECS Announcement") released by the Company's ultimate holding company, Ezra Holdings Limited ("Ezra"), where Ezra announced that its associated company, EMAS CHIYODA Subsea Limited ("ECS") has, together with certain subsidiaries of ECS, voluntarily filed a petition for relief under Chapter 11 of the United States Bankruptcy Code ("ECS Chapter 11 Filing") to obtain the protection of the United States Bankruptcy Court while a restructuring of ECS and its subsidiaries is being pursued.
As disclosed in Ezra's ECS Announcement, the ECS Chapter 11 Filing may have a negative impact on Ezra and its subsidiaries and associated companies, including the Group. The Company is therefore currently seeking advice on the ECS Chapter 11 Filing, as well as assessing the impact of such filing on the Group. The Group will work closely with its principal bankers to review all options to finalise the provision of additional working capital facilities as well as the documentation of the refinancing of its financial obligations. As previously disclosed by EOL in its unaudited financial information for the first quarter of financial year ended 30 November 2016, in the event that these efforts do not achieve a favourable and timely outcome, the Group will be faced with a going concern issue.
The Company will make further announcements in compliance with the listing requirements of the Oslo Bors when there are material developments in respect of the Ongoing Initiatives.
Shareholders of the Company are advised to exercise caution when trading in the Company's shares as there is no certainty or assurance as at the date of this Announcement that the definitive agreements for the Ongoing Initiatives will be entered into or the Ongoing Initiatives will be undertaken or completed at all. When in doubt as to the action they should take, shareholders and potential investors should consult their financial, tax or other advisers.
This announcement is subject to disclosure pursuant to section 5-12 of the Norwegian Securitries Trading Act.
By Order of the Board
Shannon Ong
Company Secretary
02 March 2017
For further information, please contact:
Mr. Hsu Chong Pin,
EMAS Offshore Limited
Tel: +65-6800-1202
investor_relations@emasoffshore-cnp.com
Singapore
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http://news.cision.com/emas-offshore-limited/r/delay-in-completion-of-the-refinancing-of-financial-obligations-and-provision-of-new-working-capital,c2203647
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