OCBC sees Ezra either deferring or defaulting on its notes redemption

Singapore

BELEAGUERED Ezra Holdings, in tackling the complications from the impairment of its stake in its associate Emas Chiyoda Subsea (ECS) and the subsea unit's US Chapter 11 application, will at best defer, or at worst default, on its notes redemption, according to an OCBC Asia Credit research note.

OCBC Bank credit analyst Nick Wong noted that the management of Ezra Holdings has to contend with a war on many fronts: contingent liabilities from ECS Chapter 11 filing, ongoing refinancing efforts at Emas Offshore Limited (EOL), and the still unresolved put option with Perisai Petroleum.