3 bareboat charters of Emas Offshore's subsidiary terminated

Marine firm Emas Offshore said three bareboat charter agreements entered into by its Malaysian unit have been terminated.

The subsidiary, Emas Offshore (M) (EMM), had chartered the vessels - Lewek Ariel, Lewek Lynx and Lewek Alkaid - but received three separate notices of termination dated Nov 2.

In all the cases, the vessel owners accused EMM of breaching its material obligations and asked to terminate the agreements with immediate effect.

Emas Offshore's parent company, Ezra Holdings, had acted as a guarantor for all three charters. Ezra Holdings has filed for Chapter 11 bankruptcy protection.

The owners have asked that the vessels be safely redelivered at a safe anchorage in Singapore or other ports.

Emas Offshore and EMM are seeking legal advice over the termination notices and assessing the impact they could have on the group.

Both companies are in discussion with the Ariel and the Alkaid owners, as well as the owners' principal financier to enter into a new commercial arrangement.

Emas said the Lewek Lynx is "off-hire".

The firm is also in discussions with the owner and its principal financier to effect redelivery of the vessel and to enter into a new commercial arrangement.

A version of this article appeared in the print edition of The Straits Times on December 07, 2017, with the headline '3 bareboat charters of Emas Offshore's subsidiary terminated'. Print Edition | Subscribe