Philippines' Udenna Corp inks non-binding term sheet to bail out Emas Offshore

EMAS Offshore may have found a rescuer in its financial restructuring, under a non-binding term sheet with the Philippines' Udenna Corp announced by the board on Friday.

Under the term sheet, Udenna could put in US$73.29 million, both to buy some of Emas' vessels now secured to various bank lenders and to invest in wholly-owned subsidiary Emas Offshore Pte Ltd.

Udenna has five weeks from Oct 29 to wrap up satisfactory due diligence, as well as propose and finalise mutually acceptable terms and conditions for a formal binding agreement.

Among its other businesses, Udenna is involved in shipping and logistics as well as dealing in refined petroleum products, and is the majority shareholder of shipping company Chelsea Logistics Holdings Corp.

Emas Offshore will give further updates when there are material developments, said the board.

It added that shareholders should note that there is no certainty or assurance that any binding term sheet will be entered into or the proposed transaction will be completed.

Emas Offshore, a unit of Ezra Holdings, has been the target of multiple delisting attempts by the Oslo Stock Exchange.

Trading in Emas Offshore shares on the Singapore Exchange has been suspended since March 2017.