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Potential investment for ailing Emas Offshore is off

THE US$73.29 million proposed investment that the beleaguered EMAS Offshore is looking forward to has been called off.

EMAS Offshore in a regulatory filing on Wednesday announced that Udenna had informed the company that it would no longer be injecting US$73.29 million into the offshore services provider. No reasons were given in the announcement for Udenna's decision.

Udenna and Emas inked a non-binding term sheet last October, that would have seen the former pumping the money into Emas Offshore's wholly-owned subsidiary, Emas Offshore Pte Ltd, as part of the financial restructuring of the group. A portion of the funds would go towards buying Emas vessels that have been secured to various bank lenders.

Udenna had an exclusive five-week period to do its due diligence, and to propose and finalise mutually acceptable terms and conditions for a binding agreement. However, the formal binding agreement did not materialise.

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Bids to bail out Emas or related units have failed before. Oil and gas equipment supplier Baker Technology pulled out of a rescue plan last 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 in 2017, and the stock has been the target of delisting attempts by the Oslo Stock Exchange.