Triyards flags $38m exposure to Ezra

Triyards Holdings has revealed that it has an exposure of approximately $38.2m to financial institutions following the filing of Chapter 11 bankruptcy by its holding company Ezra Holdings.

Triyards, provider of engineering, construction and fabrication services, said the company has guaranteed part of the joint bank facilities granted to the company and Ezra, which it is liable for in the event of default by Ezra up to a maximum of $30m.

The current outstanding amount under this facility is approximately $29.7m.

“At this stage, none of the financial institutions have taken any action with respect to the $30m liability,” Singapore-listed Triyards said.

In addition, under one of the existing banking facilities with an outstanding borrowing by the group of approximately $8.5m which remains outstanding, Ezra and Triyards have jointly provided guarantees to the financial institution.

“Following the Ezra Chapter 11 filing, the relevant financial institution may assert its right to demand repayment of the $8.5m liability,” Triyards said.

Triyards added that it is also owed $1.4m and $1.6m by Ezra and EMAS Chiyoda Subsea (ECS), respectively, in intercompany receivables and payables.

ECS, 40% owned by Ezra, has also filed for Chapter 11 bankruptcy.

“The company is currently seeking advice on the Ezra Chapter 11 filing, as well as assessing the impact of such filing on the group,” Triyards stated.

Triyards added that while the company does not have a going concern issue at this stage, it will review and assess this ability in the event of any actions taken by the financial institutions.

Posted 22 March 2017

© Copyright 2019 Seatrade (UBM (UK) Ltd). Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Seatrade.

Lee Hong Liang

Asia Correspondent

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