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Emas Offshore enters into revised term sheet with BT Investment

BELEAGUERED offshore support vessel owner-operator Emas Offshore Limited (EOL) has entered into a revised term sheet with BT Investment (BTI) after terminating the prior term sheet on Dec 9, it said in an update on the proposed investment by BTI into EOL as part of its restructuring efforts.

Meanwhile, the company - together with its wholly owned subsidiaries, Emas Offshore Pte Ltd and Emas Offshore Services - has made a scheme plication to Singapore's High Court. The scheme applications will be heard on a date to be fixed by the Court at a pre-trial conference scheduled on Dec 21.

EOL highlighted that the new term sheet will allow the group to continue with its restructuring exercise to "substantially deleverage" its balance sheet via schemes of arrangement and to strengthen its working capital position through the subscription of new shares by BTI and co-investors, if any, in EOL. BTI is a wholly owned subsidiary of Baker Technology.

"The completion of the restructuring exercise and the investment will enable the group to continue as a going concern," EOL added. It was previously announced that the term sheet may be terminated if the restructuring exercise was not under way by or the scheme application was not filed by Oct 30.

BTI's investment could potentially be structured as a stand-alone investment; a cornerstone investment for a capital market equity raise and/or an investment alongside a co-investor; or any other viable structure, subject to a minimum investment by BTI of US$25 million.

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However, if there is no other co-investor and/or subscriber, BTI will invest the full US$50 million. Under the initial term sheet, private equity buyout company Point Hope had been named as a potential investor.

As a result, BTI and any other co-investor will receive at least a majority of the enlarged issued share capital of the reorganised company.

EOL said: "To ensure business continuity and operations of the EOL Group will not be impacted, pending as well as after, the completion of the investment and restructuring exercise, it is the intention of the investors and the company that key management and support staff of the group is retained via the planned management incentives."

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