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Ezra Holdings files for Chapter 11 bankruptcy

Mon 20 Mar 2017 by David Foxwell

Ezra Holdings files for Chapter 11 bankruptcy
Ezra Holdings says it hopes to use the Chapter 11 proceedings to “achieve a sustainable capital structure”

Ezra Holdings Limited, together with wholly-owned subsidiaries EMAS IT Solutions Pte Ltd and Ezra Marine Services Pte Ltd, has filed voluntary petitions for reorganisation under Chapter 11 of the US Bankruptcy Code.

The company said it had filed in order to facilitate the financial restructuring of the Ezra Holdings Chapter 11 entities, and consequently, the group.

In a statement the company said: “The board commenced the Ezra Chapter 11 Filing, which it believes to be in the best interest of all of the company’s stakeholders, to achieve a sustainable capital structure for the group and financial restructuring of the Ezra Chapter 11 entities through a transparent restructuring process under the supervision of the US Bankruptcy Court.

“The filing is intended to optimise the scope and extent of the restructuring options available and to protect the interests of all stakeholders of the company from hostile actions that could harm the company and its stakeholders by diminishing the group’s value.

“The moratorium afforded under the Ezra Chapter 11 filing stays claims against the Ezra Chapter 11 entities and enforcement actions against their assets.”

In the filing Ezra Holdings listed consolidated long-term assets with a value of US$1.3 billion and assets of $623 million for the fiscal year ended 31 August 2016. Ezra Holding’s 20 largest creditors without collateral securing their claims are said to be owed approximately US$607.6 million. DBS Group (DBS) and Oversea-Chinese Banking Corp (OCBC) are believed to be the company’s two largest creditors listed in the filing. They are also the two largest creditors of secured debt.

In February, EMAS Chiyoda Subsea, which is part owned by Ezra Holdings, was placed under bankruptcy, owing creditors around US$966 million.