Ezion Holdings has determined the company is unable to pay its debts and is cash-flow insolvent, and that liquidating the company is in the best interests of its creditors, the jack-up liftboat charterer said in a filing to SGX Wednesday.
A liquidation “ensures an orderly wind down of the affairs of the company under the control of a court-appointed liquidator,” Ezion said in the filing. ” It is the most time-efficient and cost-effective manner to realise value from the remaining assets of the company.”
After an investment plan lapsed in September 2020, Ezion had attempted a restructuring exercise via disposal plans and discussions with potential investors, the filing said.
“Although the company had various discussions with potential investors for plans to recapitalise the group, the company was ultimately unable to procure a potential investor with a proposal that is able to secure sufficient support of its major creditors,” Ezion said.
SGX-ST had provided the company an extension of time to provide its third quarter financial statements, but, due to the resignations of finance staff members and the lack of resources, the company won’t be able to announce the quarter’s results, Ezion said.