A binding term sheet was entered into between EOL and the unrelated third-party investors BT Investment (BTI) of Baker Technology and Singapore-based private equity buyout firm Point Hope.
BTI and Point Hope will each invest $25m for EOL’s financial restructuring exercise, allowing the investors to receive at least a majority of the share capital of EOL on a fully diluted basis.
The restructuring exercise is proposed to be carried out mainly by way of a scheme of arrangement and the issuance of new shares in EOL for subscription by each of the investors.
EOL said it hopes that the restructuring will “substantially deleverage the company’s balance sheet and strengthen its working capital position to enable the group to continue as a going concern.”
EOL added: “It is also the intention of the potential investors that the key management of the EOL group is retained to ensure that the operations of the EOL group will not be impacted during and after the restructuring exercise.”
EOL and its two wholly-owned subsidiaries, Emas Offshore Pte Ltd and Emas Offshore Services Pte Ltd, have voluntarily filed a restructuring application to the High Court of Singapore.
EOL had already seen the winding up of another of its wholly-owned subsidiary Lewek Champion Pte Ltd on a request made by Hai Jiang 1401, a special purpose vehicle fully owned by China’s ICBC Financial Leasing.
Ezra Holdings, parent firm of EOL, has also filed for Chapter 11 bankruptcy in March this year.