Emas Offshore unit slapped with US$195 million trade claim

Emas Offshore told the Singapore Exchange in a filing on Tuesday (April 18) that its subsidiary, Lewek Champion Shipping, received a statutory demand in relation to a bareboat charter.
Emas Offshore told the Singapore Exchange in a filing on Tuesday (April 18) that its subsidiary, Lewek Champion Shipping, received a statutory demand in relation to a bareboat charter.PHOTO: EMAS OFFSHORE

SINGAPORE - A wholly-owned unit of Emas Offshore has received a trade claim of more than US$195 million (S$272.15 million), and may be wound up if the payment is not made within a stipulated period.

Emas told the Singapore Exchange in a filing on Tuesday that its subsidiary, Lewek Champion Shipping, received a statutory demand on April 12 from the solicitors of vessel owner Hai Jiang 1401, in relation to a bareboat charter.

Hai Jiang 1401 said that if payment for the US$195 million claim is not paid up within 21 days from when the statutory demand was served, a winding-up application will be filed against the subsidiary

It had served a notice of termination for the bareboat charter after Emas Chiyoda Subsea Services and its affiliates filed an application with the US bankruptcy court to reject a back-to-back bareboat charter on the vessel.

Emas said it is seeking legal advice in respect of the statutory demand and is assessing its impact on the group.