Ezion, Swissco in legal spat over joint ventures

A LEGAL spat is developing between two listed offshore and marine groups, Swissco Holdings and Ezion Holdings, over claims tied to their offshore drilling joint ventures.

Swissco said on Thursday that Ezion, in its statutory demands issued to Scott & English Pte Ltd (S&E) for claims of over US$500,000, asserted the rights to file a winding-up petition against S&E if a satisfactory settlement could not be reached on the claims. S&E is the offshore drilling subsidiary of Swissco.

Ezion in three statutory demands issued on Nov 9 and Nov 10 said it was owed the sums of US$236,695.94, US$151,335.63, and US$134,081.31 for procuring certain corporate guarantees in respect of the liabilities of the joint ventures.

Ezion stated that "unless the sums are paid, secured or compounded to its satisfaction within three weeks from Nov 9 and Nov 10" it will be entitled to pursue an application to the court for S&E to be wound up.

Swissco said S&E's position is that the alleged corporate guarantee fees are not due and payable to Ezion. S&E also considers that it has counterclaims against Ezion and that these counterclaims outweigh and fully set off any amounts in relation to the alleged corporate guarantee fees that may be due to Ezion.

Swissco has separately received letters from certain holders of redeemable exchangeable preference shares (REPS) in its two other group companies alleging a breach of joint venture agreements dated Oct 10, 2014.

Swissco said it is taking legal advice for the claims issued by Ezion and in the letters from the REPS holders.