Emas hit with two charter claims

Emas Offshore is now being pressed to pay its debts arising from charter terminations for two vessels, the Lewek Toucan and the Lewek Pelican.

On March 17 Emas received charter terminations for the two vessels from its respective owners, Seabird Penguin Offshore Limited and Seabird Pelican Offshore, requesting payment within ten banking days for the remaining charter period, re-delivery of the vessels to their owners, and damages arising from the termination of the charters.

The vessels were chartered by Emas Offshore’s subsidiaries and, in both cases, Emas Offshore and its parent company Ezra Holdings Limited issued a deed of guarantee and indemnity.

Emas Offshore said on Thursday it received on March 22 notices of demand issued by Seabird Penguin Offshore and Seabird Pelican Offshore.

The owner of the Lewek Toucan vessel alleged that the charterer owes an aggregate sum of $35.34 million to the owner due to the termination of the charter and demanded that the charterer remit the sum of $7.4 million to the owner within 10 business days of the date of the notice of demand.

The Toucan owner further stated that it intends to keep the following sums and apply them to cover its losses and damages under the Toucan charter: $20.9 million under the guarantor’s credit agreement dated March 17, 2016, entered between the Toucan owner and the company; and $7 million under the charterers’ credit agreement dated March 17, 2016 entered between the Toucan owner and the Toucan charterer.

In case Emas is unable to pay the specified amounts, the vessel owner said it would reserve the right to pursue the Toucan charterer for the full value of the Toucan debt.

The owner of the Lewek Pelican alleged that the charterer owes $18.5 million due to the termination of the charter and demanded that the charterer remit the sum of $10.1 million to the owner within ten business days of the date of the notice of demand.

The Pelican owner further stated that it intends to keep the sum of $8.4 under the charterers’ credit agreement dated May 19, 2016, entered between the owner and the charterer and apply the Pelican specified sum to cover its losses and damages under the charter.

Just as for the Toucan vessel, the owner of Pelican reserves its right to pursue the Pelican charterer for the full value of the debt.

Emas said that the charterers of both vessels are seeking legal advice in respect of the notices of demand as well as assessing their impact and correctness of the sums.

Debts are piling up for Emas and only ten days ago, following Ezra’s filing for bankruptcy protection, the company said it might be facing a going concern issue in case it fails to refinance its financial obligations.

Also in March, Emas got a charter termination for the pipelay construction vessel Lewek Champion by Hai Jiang 1401, the vessel-owning unit of ICBC Financial Leasing Co. Ltd. Ezra, as the guarantor to the bareboat charter, was hit by a payment demand in the amount of $194.5 million.

Offshore Energy Today Staff