Ezra not making interest payment, due on April 24, on its $150m notes

Ezra Holdings’ subsea construction vessel Lewek Constellation.
Ezra Holdings’ subsea construction vessel Lewek Constellation. PHOTO: EZRA HOLDINGS

SINGAPORE - Debt-laden offshore marine group Ezra Holdings, which filed for US bankruptcy protection last month, wsaid it will not be making the interest payment that was due on April 24 on its S$150 million of 4.875 per cent fixed rate notes due 2018.

Ezra said the interest payment "constitutes pre-Ezra Chapter 11 filing unsecured claim that the company is not permitted to make pursuant to the United States Bankruptcy Code."

"Accordingly, the company will not be making payment in respect of the 24 April 2017 interest," it said in a statement dated Monday (April 24).

The missed coupon payment is believed to be around S$3.66 million.

Ezra met with bond holders last week, in a two-hour session that was attended by about 100 people, to update them on the company's financial position. The Singapore Exchange. which is trying to help Ezra's bond holders, has said there are 373 holders of Ezra notes that are custodised with the Central Depository.

The company also faces debt of possibly as much as US$2 billion (S$2.8 billion)

According to court papers, its largest unsecured creditors include all three Singapore banks: DBS Bank, with claims totalling US$281.4 million; OCBC Bank, with around US$207 million; and United Overseas Bank (UOB) with US$22.8 million. In terms of secured debt, OCBC and DBS have claims of more than US$47.2 million each, while UOB has US$10.2 million. OCBC also has a secured claim of over US$26 million against Ezra Marine Services