Emas Offshore agrees fresh investment deal

Singapore’s offshore services provider Emas Offshore has entered into a new agreement related to a proposed investment in the company as part of its restructuring process. 

To remind, Emas in late August entered into a binding term sheet with unrelated third-party investors BT Investment Pte. Ltd. (BTI), a subsidiary of Baker Technology Limited, and Point Hope related to the proposed cash investment for a total amount of $50 million.

As part of the agreement, the parties had the right to terminate the term sheet and abandon the restructuring exercise if Emas’ restructuring exercise was not under way or the scheme application was not filed by October 30.

On December 9, 2017, Emas exercised its right to terminate the term sheet and, on the same day, entered into a new binding term sheet with BTI in relation to the proposed cash investment by BTI into the company as part of the restructuring exercise of the group.

According to Emas’ statement on Monday, the term sheet will allow the group to continue with its restructuring exercise to substantially deleverage the group’s balance sheet by way of, inter alia, schemes of arrangement to be proposed by the company and certain of its subsidiaries and to strengthen its working capital position by way of the subscription of new shares by BTI and co-investors, if any, to be issued out of the share capital of the company. The completion of the restructuring exercise and the investment will enable the group to continue as a going concern.

The terms of the agreement include the investment amount of $50 million for the whole restructuring exercise.

The investment may be structured at BTI’s option as a stand-alone investment, as a cornerstone investment for a traditional capital market equity raise and/or an investment alongside a co-investor, and any other viable structure, subject to a minimum investment by BTI of $25 million.

If there is no other co-investor, BTI will invest the entire investment amount. Just like the previous one, the term sheet may be terminated, and the restructuring exercise contemplated may be abandoned, at any time prior to closing of the investment.


Emas Offshore, together with its subsidiaries, has filed an application with the High Court of Singapore, seeking the court’s leave for each of the Singapore filing entities to convene their respective creditors’ meeting within four months from the date of the order, for the purposes of considering and, if thought fit, approving with or without modification the respective scheme proposed to be made between the Singapore filing entities and their creditors.

Offshore Energy Today Staff

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