THE suit filed by Atlantic Marine Services BV (AMS) against Singapore-based offshore service provider Ezion Holdings has been withdrawn, the latter announced on Wednesday evening.
Amsterdam-based AMS has further agreed to release and discharge Ezion from all claims that had been alleged in the suit, the latter said in a statement.
AMS has informed Ezion that there has been a change in its management and that it intends to cooperate and work closely with the group to support the operational requirements of a common client in the North Sea for three of its service rigs, Ezion said.
The company on Wednesday reiterated that the claims by AMS in the suit are "frivolous" and "without merit".
In May, Bloomberg had reported that AMS had filed a Singapore High Court suit accusing Ezion of a conspiracy to induce an AP Moeller-Maersk unit to breach charter agreements.
AMS earlier said that Ezion created the impression that AMS, which had partnered Ezion to charter oil rigs to Maersk Oil, was in financial trouble.
In response, Ezion challenged AMS's claims, saying: "The group has received feedback that AMS has failed to meet its contractual and operational obligations and is currently in discussions with (a European-based multinational) oil major on how to better serve its requirement. Such discussions may include the group taking over the operations of the three service rigs (working in the North Sea that are operated by AMS).
"The suit has arisen as a result of this development as AMS has objected to the idea of the group taking over the operations of the three service rigs and has threatened to take whatever actions to stop the communication between the group and the oil major. The suit is seeking from the court an injunction restraining the group from communicating with the oil major to terminate its contract with AMS without putting a monetary value to the claim."
On Wednesday, Ezion said: "The company welcomes the latest developments and will continue to engage with the new management of AMS."
Before news was announced on Monday, the Ezion counter closed trading up 2 per cent at S$1.02.