Ezra hit by $194m claim by China’s ICBC Financial Leasing

Hai Jiang 1401, a special purpose vehicle fully controlled by ICBC Financial Leasing, issued a notice of termination dated 9 March to vessel charterer Lewek Champion Shipping, wholly-owned by EOL, to terminate the agreement.

The vessel owner alleged that Lewek Champion Shipping has defaulted on payment of $1.58m under the bareboat charter as part of the sale and leaseback agreement entered into in February 2014. The purchase price of the vessel under the 2014 agreement was $200m.

The vessel Lewek Champion was arrested and detained by Huisman Equipment BV in Xiamen, China since 18 February.

“The owner also made a claim to the company, as guarantor to the bareboat charter, and demanded a payment of the termination sum of an aggregate $194,499,500 within 15 business days from the date of the notice of termination,” Singapore-listed Ezra stated.

The sale and leaseback arrangement had stipulated a vessel charter period of 120 months, and mentioned that the bareboat charterparty is a “hell and high water” charterparty.

A sub-charterparty on terms largely mirroring the Lewek Champion bareboat charter was also entered into with EMAS-AMC as the sub-lessee. EMAS-AMC is wholly-owned by EMAS Chiyoda Subsea (ECS), which has filed for Chapter 11 bankruptcy protection on 28 February.

Ezra is already facing claims made by the solicitors of VT Halter Marine (VTH) and Forland Subsea of $3.21m and $3.1m respectively. In both cases, Ezra is the guarantor for its joint venture firm ECS.