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Ezion's debt conversion agreement with white knight lapses

EZION Holdings' conditional debt conversion agreement and conditional option agreement with would-be white knight Yinson Holdings have lapsed, the offshore and marine group announced on Tuesday night.

Under the conditional debt conversion agreement, Malaysia-listed Yinson was to have wiped out some US$916 million of Ezion's debt and in turn received new Ezion shares at 5.5 Singapore cents apiece.

However, the proposed subscription and grant of options were subject to the satisfaction of certain conditions as set out in the conditional debt conversion agreement and conditional option agreement, within six months of said agreements.

These conditions had not been fulfilled or waived by this long-stop date, said Ezion. On Oct 1, Ezion and Yinson decided not to extend the deadline. Accordingly, the conditional debt conversion agreement and the conditional option agreement have lapsed and will cease to have further effect.

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"Notwithstanding, the company remains in discussions with the subscriber, as well as the designated lenders, to explore possible ways to move forward," said Ezion, adding that it will keep shareholders informed of any further developments and make the necessary announcements.

Although its shares are under voluntary suspension, Ezion advised shareholders to refrain from taking action in respect to their securities which may be prejudicial to their interests and to exercise caution when dealing in the company's shares.