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Ezion's JV Terasea placed under creditors' voluntary winding-up
TERASEA, a joint venture in which offshore and marine group Ezion Holdings has a 50 per cent interest, was placed under creditors' voluntary winding-up from Tuesday.
This follows a resolution passed at Terasea's extraordinary general meeting, and confirmation by its creditors.
BDO Advisory has been appointed the joint and several liquidators of Terasea for the purposes of winding-up its affairs, said Ezion Holdings in a statement on Tuesday.
The winding-up of Terasea is not expected to have a material impact on Ezion Holdings' net tangible assets or earnings per share for the financial year ending Dec 31.
Last year, POSH Terasea Pte Ltd (PTPL), a 50:50 joint venture formed by PACC Offshore Services Holdings (POSH) and Terasea, defaulted on a debt, pegged at US$27.6 million as at Sept 17. This triggered a cross default under a second loan facility by another lender to the joint venture.
PTPL is managed by POSH, and Ezion's effective interest in PTPL is 25 per cent. Ezion Holdings also said that the default had "no material impact" on the group.
Ezion's shares closed flat at S$0.043 on Tuesday before this announcement.