This article was originally published on Thursday, 24 October 2019 at 22:51; it has since been updated to add comment from Ezion.
PACC Offshore Services Holdings (POSH) said Thursday its joint venture, POSH Terasea (PTPL) would be voluntarily liquidated by creditors after it defaulted on a facility with an outstanding amount of around US$27.6 million.
The maximum potential impact on POSH remained up to US$42 million, as it had disclosed in September, the company said in a filing to SGX.
PTPL is 50 percent-owned by POSH and 50 percent-owned by Terasea, which itself is a 50:50 joint venture between Ezion and Seabridge Marine Services.
In a separate filing to SGX, Ezion said Matthew Stuart Becker and Lim Loo Khoon, both care of Deloitte & Touche LLP, were appointed to act as the joint liquidators of PTPL.
Ezion added that PTPL’s winding up isn’t expected to have a material impact on its net tangible assets or earnings per share for the current financial year.
The US$27.6 million outstanding loan had been secured by PTPL’s five anchor-handling tug supply vessels, POSH had previously said. That default had triggered a cross-default under a second loan facility by another financial institution, POSH said previously.
The second facility was for around US$7.1 million and is secured by mortgages on two anchor handling tugs owned by PTPL, POSH said previously.