SINGAPORE - Another Singapore-listed offshore services firm is appealing to bondholders' to change the terms of its debt repayment.
Ezra Holdings announced on Tuesday (Oct 18) it is seeking noteholders' consent to amend the terms of its S$150 million of 4.875 per cent notes due 2018 to avoid any potential covenant breaches or default.
In a filing with the Singapore Exchange, Ezra said it is offering a consent fee of 0.1 per cent for noteholders who accept their proposal by 5pm on Nov 2, 2016. This works out to S$250 per S$250,000 in principal amount of notes held, less any bank charges, which shall be borne by the noteholders.
Those who accept the proposal after the early-consent deadline will receive a consent fee of 0.05 per cent, or S$125 per S$250,000 of notes, less bank charges.
Ezra said that the consent solicitation is necessary to avoid any non-compliance with the terms of the notes as it explores options to address its various financial obligations and strengthen its financial position.
Ezra will convene an extraordinary general meeting for bondholders at 10am on Nov 9. It will also be holding an informal meeting with the bondholders at 10am on Oct 25 to update them on the on the company's current position and provide further information about the consent solicitation, the company said in another filing on Tuesday.
In addition to the persistent oil price slump which has led to ongoing cuts in global exploration and production capital spending, Ezra has been hit by the woes of its affiliate, Perisai Petroleum Teknologi, which defaulted on S$125 million of bonds.
Ezra has a 20.6 per cent stake in Perisai via two units and could find itself in jeopardy should Perisai fail to reach a debt restructuring deal. The two firms are also linked through a US$43 million put option, exerciseable on Nov 26.
Ezra said in its filing on Tuesday that Perisai is in discussions with a financial institution to secure financing that may allow the Malaysian oil rig contractor to negotiate a mutually acceptable debt restructuring with its creditors which include holders of the Perisai notes.
Ezra said that in the event that Perisai is not successful in negotiating a favourable outcome with its noteholders, it may need to assess its investment in Perisai and the accounting impact arising from this.
Ezra has joined the ranks of Swissco Holdings, Rickmers Maritime, Marco Polo Marine and AusGroup in seeking to restructure debt. Oilfield services firm Swiber Holdings, which initially filed for liquidation, gained court approval this month to place itself under judicial management.