Singaporean owner of lift boat Ezion ceases operations
Offshore services company Ezion Holdings, owner of pioneering lift boat company Teras Offshore, said Thursday it plans to wind down operations. The company has lost money for years, and trading in its shares has been suspended since 2019.
Ezion gradually sold his fleet, but he was hoping to partner with a new investor to transform into a pure ship management company. This partnership did not materialize and the company’s creditors did not express support for further restructuring efforts.
In a market paper filed Thursday, Ezion directors said the company is insolvent and unable to pay its debts, and that it is time to seek the best value for its investors through an “orderly liquidation of the affairs of the company ”through a liquidation court.
Ezion suffered a major financial blow during the 2020 downturn due to COVID, and the company has slowly pulled out of the market by divesting assets. In June, it sold a drill and five barges for a nominal fee. In July, it sold two tugs and an elevator to Hong Kong-based ZhongXie Industrial, raising $ 84 million. The proceeds were used to pay off the debt.
In October, Ezion announced that it had signed agreements to sell four stacked elevator boats – Teras Conquest, Teras Fortress, Teras Conquest 5 and Rising Phoenix – for a total of $ 40 million. Due to a lack of funds to reactivate and deploy these leased vessels, the company decided that the divestiture “will allow the group to stop incurring new operating costs and liabilities and also allow (… Partial repayment of loans bank guarantees “). He also announced the liquidation of a subsidiary, a 25 percent pay cut for senior executives and a drastic reduction in the workforce of 71 percent.