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Hot stock: Ezra Holdings shares tumble as firm seeks bondholders' waiver on debt covenants
SHARES of debt-heavy Ezra Holdings fell 4 per cent to 4.6 Singapore cents following an announcement that it is seeking bondholders' waiver of certain financial covenants attached to its S$150 million notes due April 2018.
Ezra Holdings joins a rising number of offshore and marine firms in Singapore that are hoping to loosen their debt covenants as the oil slump takes a toll on their financials.
In a presentation to noteholders at a meeting on Tuesday morning that was posted on the Singapore Exchange, Ezra Holdings said that it expects the offshore oil and gas environment to further deteriorate before stabilising in the medium term.
Under a proposed consent solicitation exercise, Ezra hopes to get support from bondholders to waive a breach or potential breach or default arising from it not complying with the financial covenants.
A noteholders meeting has been scheduled for Nov 9.
The company sought a trading halt on Tuesday morning pending the release of the announcement.