High Court grants moratoria on legal proceedings against EOL

SINGAPORE'S High Court has extended a moratorium on legal proceedings against Emas Offshore Ltd (EOL) and two subsidiaries that have filed together with their parent group, an application to restructure their debts under a scheme of arrangement (SA).

EOL said before Tuesday trading close that the moratorium applies to among others, the appointment of a receiver or manager and enforcement of any security over any property of it and its two subsidiaries, Emas Offshore Pte Ltd and Emas Offshore Services Pte Ltd.

It added that the moratorium extends for a period of six months from the date of the SA application, or until further court order.

The court also ordered the two EOL subsidiaries to submit, on or around Sept 29, a report on the valuation of their significant assets, and forecasts of the profitability and the cash flow from the operations of the two subsidiaries and their parent group, EOL.

Additionally, the court also ordered for information relating to any acquisition or disposal of any property or grant of security over any property to be submitted no later than 14 days from the acquisition, disposal or grant of security.

The court heard the SA application from the filing entities on Sept 25.

Observers expect the SA to facilitate the conclusion of a deal on the table for US$50 million investments to be injected by a wholly-owned subsidiary of Baker Technology (Baker Tech) and buy-out firm, Point Hope Pte Ltd.