Ezra Holdings' woes continue to pile up, with the Singapore-listed oil services group reporting yesterday that it had received a statutory demand for payment of 25.5 million Norwegian krone (S$4.4 million).

The solicitors of Forland Subsea, which issued the demand on Monday, stated that if payment is not secured within three weeks, they will apply for the company to be wound up by the High Court here.

They said Ezra owes the sum as it is the guarantor for Emas-AMC, a wholly owned subsidiary of Emas Chiyoda Subsea, which is 40 per cent owned by Ezra.

Forland had agreed in 2012 to charter a vessel to Emas-AMC.

Ezra said in the filing with the Singapore Exchange that it is seeking advice on the statutory demand.

On Monday, its shares fell to an all-time low on fears that the firm's huge debts may send it into liquidation. Its net current liability position for the financial year ended Aug 31, 2016, was US$887.2 million (S$1.3 billion).

Ezra also disclosed last Friday that it may have to take a US$170 million write-down from its investments and loans to the troubled joint venture Emas Chiyoda Subsea.

Ezra faces what is called a "going concern" issue, as it may not be able to restructure its businesses and balance sheet in time. It said that it was looking at restructuring options.

Yesterday, the shares closed unchanged at three cents, with 175.4 million shares traded.

Ann Williams