Ezion to wind up as protracted attempt to restructure, recapitalise fails

TROUBLED liftboat operator Ezion Holdings will be proceeding to wind up as it could not find a potential investor with a proposal that can secure enough support from its major creditors, it said in a bourse filing on Thursday (Dec 30).

Since an investment plan lapsed in September last year, the company had been trying to restructure via its disposal plans, and talking to potential investors to recapitalise the group or realise the value of its listed status.

But on Thursday, Ezion said in a status update that the company, after speaking to several potential investors, will not continue with its restructuring and recapitalisation efforts given that it does not have continued support from its secured creditors.

It then identified winding up the company as the next step if it were to act in the best interest of its creditors, since it could not pay its debts and is cashflow insolvent.

Liquidating Ezion would ensure "an orderly wind down of the affairs of the company" under the control of a court-appointed liquidator, it said, adding that the move is also "the most time-efficient and cost-effective manner" to realise value from the remaining assets of the company.

Trading of Ezion shares had been suspended since early 2019.

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Ezion said on Thursday that it will no longer be in a position to submit a proposal for trading to resume due to its intention to proceed with liquidation.

It also stated that it will not be able to release its financial statement for the third quarter ended Sept 30, 2021, although the Singapore Exchange Securities Trading had granted a time extension.

This is because its finance staff members have resigned and the company lacks further resources to do so, it said.

Ezion said it will make further announcements as and when there are developments on its status, including the commencement of liquidation proceedings.

READ MORE: 

• Covid-19: Virus and Singapore's shutdown delays Ezion's rescue deal
• Opportunity for corporate restructuring amid pandemic
• Ezion Q1 net loss widens sharply to US$211.3m