Embattled offshore services provider Emas Offshore has entered into a revised term sheet with BT Investment (BTI) as it presses on with restructuring efforts.
The move follows the termination of an earlier term sheet last Saturday.
BTI, a wholly owned subsidiary of Baker Technology, is proposing to invest in Emas Offshore.
In addition, Emas Offshore and two wholly owned subsidiaries have made a scheme application to Singapore's High Court.
A date to hear these applications will be fixed at a pre-trial conference on Dec 21.
Emas Offshore said the new term sheet will allow the group to continue with its restructuring exercise to "substantially deleverage" its balance sheet via schemes of arrangement and to strengthen its working capital position through the subscription of new shares by BTI and any co-investors.
"The completion of the restructuring exercise and the investment will enable the group to continue as a going concern," it added.
BTI will invest a minimum of US$25 million (S$34 million). As a result, BTI and any other co-investor will receive at least a majority of the enlarged issued share capital of the reorganised company.
But if there is no other co-investor and/or subscriber, BTI will invest US$50 million. Under the earlier term sheet, private equity buyout company Point Hope had been named as a potential investor.
Emas Offshore said it will retain its existing management during the restructuring exercise in order to minimise impact on operations.
Last week, Emas Offshore's auditor, Ernst & Young, issued a disclaimer of opinion, citing "material uncertainties" that could cast significant doubt on the group's ability to continue as a going concern.
Among other things, it noted that the firm reported a loss of US$535 million, with a net current liabilities position of US$679 million as of Aug 31 last year.
E&Y also highlighted that the group's cash flows have been "extremely challenging" and that it has not been paying its principal and interests to financial institutions as well as bareboat charter payments to its lessors.
In addition, the group has also received various letters of demand from vendors, financial institutions and lessors.
