Ezra unit ECS seeks US Chap 11 protection to ring fence US$90m lifeline

Singapore

EMAS Chiyoda Subsea (ECS), the 40 per cent-owned unit of Ezra Holdings, is seeking bankruptcy protection in the US in a move that will ring fence some US$90 million in fresh funds to be injected for its financial and operational restructuring.

ECS said in a statement issued on Tuesday that the Chapter 11 petitions under the US Bankruptcy Code were filed in the Southern District of Texas Bankruptcy Court.

A court document dated Feb 27 obtained by The Business Times from ECS's filings showed DBS Bank and OCBC Bank as backing some of the largest unsecured claims against the subsea business unit.

DBS has claims against ECS for working capital loans of US$70 million and contingent claims of over US$14 million tied to one or more bank gua…