Hot stock: Ezra Holdings shares tumble as firm seeks bondholders' waiver on debt covenants
SHARES of debt-heavy Ezra Holdings fell 4 per cent to 4.6 Singapore cents following an announcement that it is seeking bondholders' waiver of certain financial covenants attached to its S$150 million notes due April 2018.
Ezra Holdings joins a rising number of offshore and marine firms in Singapore that are hoping to loosen their debt covenants as the oil slump takes a toll on their financials.
In a presentation to noteholders at a meeting on Tuesday morning that was posted on the Singapore Exchange, Ezra Holdings said that it expects the offshore oil and gas environment to further deteriorate before stabilising in the medium term.
Under a proposed consent solicitation exercise, Ezra hopes to get support from bondholders to waive a breach or potential breach or default arising from it not complying with the financial covenants.
A noteholders meeting has been scheduled for Nov 9.
The company sought a trading halt on Tuesday morning pending the release of the announcement.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Capital Markets & Currencies
Hong Kong spot crypto ETFs to start trading next week
Greenback recovers from PMI slump, yen closes in on 155 per dollar
Hong Kong Stock Exchange bids farewell to first woman chair
Asia stocks rise on Wednesday amid Wall Street rally; STI up 0.6%
Brokerage Haitong removes long-term Hong Kong unit chief Lin, appoints new head
Asia: Stocks rise on earnings optimism as US data approaches