Emas Offshore unit served termination notice over charter

OFFSHORE firm Emas Offshore on Thursday said its indirect wholly owned subsidiary has been served a notice of termination over a bareboat charter.

This relates to a charter dated April 26, 2011 between Marina Aquata Shipping Pte Ltd and the Emas Offshore unit, Emas Offshore Pte Ltd (EOPL), in respect of the leased-in vessel known as Lewek Avior.

Ezra Holdings is the guarantor in favour of Marina Aquata Shipping in respect of EOPL's obligations under the charter.

Marina Aquata Shipping has alleged that various termination events and breaches of material obligations and representation or warranty of the charter caused by EOPL and Ezra have occurred and are continuing.

Marina Aquata Shipping said the notice of termination translates to a written notice of withdrawal of the vessel from EOPL's service, and termination of the charter with immediate effect. EOPL is allegedly due to pay or reimburse Marina Aquata Shipping on demand all losses.

Emas Offshore and EOPL are seeking legal advice, and are assessing the impact of the notice of termination against the group, the company said.