Oslo Stock Exchange moves to delist Emas Offshore

Singapore

THE Oslo Stock Exchange has passed a resolution to delist Emas Offshore, a unit of Ezra Holdings and a dual-listed company in Singapore and Norway, with effect from April 27.

This was due chiefly to the company's inability to disclose financial information within the prescribed deadlines under the Oslo Stock Exchange listing rules, Emas told the Singapore Exchange late on Monday.

The offshore marine construction contractor added that it plans to make an appeal against the decision by March 5. If successful, the company will remain listed on the Oslo Stock Exchange.

Emas said that the Oslo Stock Exchange's move comes at a time when the group's restructuring exercise has made significant progress.

Emas and its wholly owned subsidiaries on Feb 15 had successfully obtained leave from the Singapore High Court to convene their respective creditors' meetings to consider a proposed scheme of arrangement.

This was with the support of the group's principal bank lenders for the restructuring plan based on a term sheet with BT Investment (BTI), Emas said.

Emas in December last year had entered into a revised term sheet with BTI, a wholly owned unit of Baker Technology. In September, BTI was named as one of two investors to have pledged a combined US$50 million equity injection.

In its announcement on Monday, Emas said that its indicative restructuring proposal has obtained "initial expressions of support" from some of the largest secured creditors of the group.

"The company intends to move forward as quickly as practicable to bring its restructuring process to a successful close, in the light of this positive development," Emas said, adding that it is working closely with its auditors to finalise the delayed financial information.

Emas said that the Oslo Stock Exchange's decision is not consistent with the progress already made, in particular the restructuring proposal.

"The company now has a real prospect of a return to viability, and the Oslo Stock Exchange's decision is detrimental to these intensive ongoing restructuring efforts and hence not in the interest of the company's shareholders," it said.

"It is the company's belief and hope that, when all the relevant facts are put before the Oslo Stock Exchange, its decision will be reversed."

Emas is a majority-owned unit of troubled offshore services firm Ezra, which has filed for Chapter 11 bankruptcy protection. Both counters have been suspended from trading.