SINGAPORE, March 3 Shares of Singapore's Ezra
Holdings Ltd fell by a fifth on Friday after it
disclosed it had provided guarantees on nearly $900 million in
liabilities and loans of Emas Chiyoda Subsea Ltd (ECS), an
affiliate that filed for U.S. bankruptcy.
Ezra is one of several Singapore offshore and marine
services firms that have been hit by a downturn in oil prices in
2014, 2015 and 2016.
Singapore banks, which were caught off-guard by the collapse
of oilfield services company Swiber Holdings last
year, have taken a hit as companies in the sector restructure
Ezra said in a statement late on Thursday that it had
guaranteed a substantial portion of liabilities relating to
vessels chartered by ECS, amounting to about $400 million.
Additionally, it had guaranteed about $500 million in loans owed
by ECS to financial institutions.
It also said it had substantial contingent liabilities
related to certain ECS projects.
ECS filed for U.S. bankruptcy earlier this week.
"In the event claims are made against the company in
relation to any or all of these guarantees, the company will
face an immediate going concern issue," said Ezra, which has
been trying to restructure its operations and balance sheet.
"The group is considering all legal options it may have
available to it to protect itself and the interests of its
stakeholders in the face of the claims against it," it said.
Ezra shares ended down 21 percent on Friday at S$0.015. The
company's stock has lost $1.5 billion in market value since a
peak in 2007.
($1=1.41 Singapore dollars)
(Reporting by Aradhana Aravindan; Editing by Neil Fullick)