Triyards calls for trading suspension

Triyards Holdings said payment delays from its clients for certain completed projects, owing to the severe oil industry downturn, had strained its resources.
Triyards Holdings said payment delays from its clients for certain completed projects, owing to the severe oil industry downturn, had strained its resources.PHOTO: TRIYARDS HOLDINGS

Yard-operating firm has difficulties accessing new sources of liquidity as lenders demand payment totalling $1.09m

Triyards Holdings converted its trading halt into a trading suspension yesterday, after two lenders slapped it with demand letters.

Triyards is the yard-operating unit of offshore marine giant Ezra Holdings, which filed for bankruptcy protection in March.

Triyards said in a bourse filing yesterday that it is "experiencing difficulties in gaining access to new sources of liquidity in the current environment".

The situation has worsened after the release of its earnings report on July 21, it said.

Triyards has received demand letters from two lenders for overdue loan instalments amounting to US$800,000 (S$1.09 million).

It said payment delays from its clients for certain completed projects, owing to the severe oil industry downturn, had strained its resources and rendered it unable to meet repayments.

Negotiations are under way but if the talks fail, the lenders could call for the entire outstanding loan amount of US$6.9 million. This might also result in a cross default on other loans granted by other financial institutions to Triyards.

Triyards' principal bankers include Chinatrust Commercial Bank, DBS Bank, OCBC Bank and United Overseas Bank, according to its last annual report.

Ezra Holdings owns 60.9 per cent of Triyards shares. Last year, Ezra pledged this stake, as well as a 75.5 per cent stake in Emas Offshore, to DBS and OCBC to secure financing.

DBS and OCBC each have a charge over 30.46 per cent of Triyards. Ezra group chief executive Lionel Lee owns another 5.23 per cent stake in Triyards.

The firm said it had called for a share suspension as it faces "a potential going concern issue until a viable restructuring plan is in place".

Although Triyards has been unable to deliver certain vessels within the contractual delivery dates, none of these clients has served notices of cancellation, it added.

It is now negotiating with these clients to establish new delivery timelines.

Triyards is also seeking more financing from lenders, and has hired a financial adviser who is working with it on a restructuring plan to present to its stakeholders.

Triyards shares last changed hands at 8.4 Singapore cents on Aug 31.

A version of this article appeared in the print edition of The Straits Times on September 07, 2017, with the headline 'Triyards calls for trading suspension'. Print Edition | Subscribe