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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.

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.