Ezion Holdings has signed agreements to dispose of its 100% effective interest in subsidiary Teras Sunrise for US$80.2 million ($108.51 million) as well as two towing tugs for US$3.46 million.
Teras Sunrise, which owns a liftboat of the same name, along with the two towing tugs “Teras Darius” and “Teras Eden”, are being sold to ZhongXie (HK) Industrial Company, a Hong Kong-incorporated marine logistics firm.
According to Ezion’s filing to the Singapore Exchange on July 13, the consideration from the two towing tugs will be in cash and utilised to repay the secured bank loans of the group.
For Teras Sunrise, $100,000 of the consideration shall be for the purchase of the sale shares, and the remaining US$80.1 million shall be used for the partial repayment of the debt owed by Teras Sunrise to DBS Bank.
See also: Ezion disposes mortgaged vessel for US$18.5 mil
According to Ezion, the disposals are in line with its restructuring plan previously announced on June 20, and to will allow the group to stop incurring further operating costs and liabilities. The group will also reduce its outstanding liabilities via the partial repayment of the secured
bank loan.
Ezion is expected to recognise a loss of US$58,750 each on Teras Darius and Teras Eden, as well as a gain of US$13.1 million on the sale shares.
Shares in Ezion closed flat at 4.3 cents on July 13.
Photo: Ezion
