Singapore-listed Ezra said it received a summons in a civil action from VTH on 6 March following the civil action lawsuit filed against ECS US and Ezra in the US district court of the Southern District of Mississippi.
“The cause of action in respect of the suit relates to the breach of loan agreement by ECS US and the guarantee provided by the company in relation to the loan agreement. The claim of the suit amounts to $3,298,153.22,” Ezra stated.
“The company is seeking legal advice in respect of the suit and assessing the impact of the suit against the group,” it added.
EMAS Chiyoda Subsea (ECS), together with its subsidiaries, filed for bankruptcy protection under Chapter 11 on 28 February.
Ezra has an exposure of approximately $900m as a guarantor to its 40% owned ECS, as well as substantial contingent liabilities that are not yet quantified.
Ezra had admitted that 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.”
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