Ezion Holdings said Tuesday four memoranda of agreement (MOA) have been entered into to sell four liftboats — Teras Conquest, Teras Fortress, Teras Conquest 5 and Rising Phoenix — for a total of US$40 million in cash.
“The group is of the view that without the required funding to reactivate and deploy the vessels for work, the disposals will allow the group to stop incurring further operating costs and liabilities and will also allow the group to reduce its outstanding liabilities via the partial
repayment of the secured bank loans,” Ezion said in a filing to SGX.
The vessels generated net losses of around US$2.18 million in the six months ended 30 June, while the estimated loss from the disposals was around US$500,000, Ezion said.
The MOAs were executed by secured bank lenders, with OCBC handling the Teras Conquest, Malayan Banking handling Teras Conquest 5 and Teras Fortress and DBS Bank handling Rising Phoenix, the filing said.
“The consideration received from the disposals will be utilised to repay the secured bank loans of the group. The mortgages over the vessels will be discharged pursuant to the disposals,” Ezion said.
Teras Conquest will be sold to Bani Yas for US$5 million, Teras Fortress will be sold to Petrodrill for US$20 million, Teras Conquest 5 will be sold to QMS Gloria for US$8 million and Rising Phoenix will be sold to QMS Amora for US$7 million, the filing said.
The consideration for each vessel is in line with their net book values based on the unaudited financial statements for the six months ended 30 June, Ezion said.
All four buyers are incorporated in Panama and are subsidiaries of Abu Dhabi-incorporated Zakher Marine International, which provides services to offshore oil and gas industries and to offshore marine construction companies, the filing said.