EMAS Offshore Limited, a subsidiary of Ezra Holdings, has started restructuring proceedings.
In an exchange filing late on Thursday night, it said that it has entered into a binding term sheet with potential third-party investors as part of its financial restructuring.
It said it had received various term sheets and expressions of interests from potential investors as part of the restructuring. "The company intends to undertake the restructuring to substantially deleverage the group's balance sheet and strengthen its working capital position to enable its business to continue as a going concern," it said.
It also said that there is no certainty that the definitive agreements with the white knight investors will be entered into.
In a separate announcement, the company said it has, together with its wholly owned subsidiaries, Emas Offshore Pte Limited and Emas Offshores Services Pte Ltd, also voluntarily made an application to the Singapore High Court to seek that no resolution be passed for the winding up of these entities.
According to the Companies Act, during the period starting from the filing of this application to 30 days after the applications are made, or the date on which the applications are decided by the court - whichever is earlier - a moratorium takes effect automatically and no order may be made for the winding up of these entities.
Emas said its board believes the automatic moratorium, and also the eventual moratorium if granted by the courts, will provide stability for the group's day-to-day operations to continue with the support of its key trade suppliers.