Philippines group working on potential deal for Emas Offshore

Singapore

A PHILIPPINE group could be sailing to Emas Offshore's rescue, in a deal announced by the board on Friday.

Udenna Corp has inked a non-binding term sheet - which could turn into a formal binding agreement - to pump US$73.29 million into the ailing offshore services provider.

The investment would put money into wholly owned subsidiary Emas Offshore Pte Ltd, and also go towards buying Emas vessels that have been secured to various bank lenders.

These vessels would then be owned by Emas, without any encumbrance, mortgage or security interest.

Udenna has an exclusive five-week period, from next Monday, to do its due diligence and to propose and finalise mutually acceptable terms and conditions for a binding agreement.

But the Emas board said shareholders should note that there was no guarantee that a binding term sheet would be entered into, or that the proposed transaction would go through.

Bids to bail out Emas, or related units, have been scuppered before.

Oil and gas equipment supplier Baker Technology pulled out of a rescue plan in July, when a subsidiary scrapped a term sheet for a joint equity injection of US$50 million.

Meanwhile, parent Ezra Holdings failed that same month to put its assets - such as Emas - under a separate trust as part of its restructuring.

Trading in dual-listed Emas was suspended here last year, and the stock has been the target of delisting attempts by the Oslo Stock Exchange.