SINGAPORE (Feb 3): Ezra Holdings says there may be a need to write down US$170 million ($240 million) worth of its investment in, shareholders&rsquo loan to, and the inter-company balances owed by ECS Group.

In a statement filed to the SGX on Friday, Ezra says it is currently accessing the impact of the writedown and anticipated downgrade of investments in ECS

Group, as well as loans extended to ECS by its joint venture partners, Chiyoda Corporation and Nippon Yusen Kabushiki Kaisha.

(See also: Ezra calls for trading halt amid writedowns at joint venture)

(See also: Ezra seeking waivers from holders of $150 mil notes due April 2018)

The group also clarified that contrary to what was suggested in the Feb 2 reports by The Business Times and The Straits Times, it has no dispute with Bibby Offshore as its claims are against ECS, which Ezra does not control.

The article by The Business Times also mentioned that Forland Subsea AS, as a trade creditor of Ezra, issued a statement in addition to Ocean Yield ASA&rsquo s &ndash both of which suggested Ezra&rsquo s subsea business unit could not service two standing bareboat charters, hence leading to the &ldquo legal spat&rdquo with Bibby Offshore.

&ldquo EMAS, a subsidiary of ECS, as the charterer of the vessel Lewek Inspector which is owned by Forland Subsea AS had defaulted on payment of charter hire for October 2016, due for payment on 30 November 2016. While EMAS&rsquo obligations under the charter are guaranteed by [Ezra], Forland Subsea AS has since agreed not to pursue repayment of the Forland Default and has not called upon the company as guarantor to repay the Forland default,&rdquo explains Ezra in reference to the article.

The group adds that EMAS has also entered into a short-term standstill agreement relating to the repayment of the bareboat charter of Lewek Connector with Ocean Yield ASA for the months of Dec 2016 and Jan 2017.

Ezra, which is currently considering undergoing restructuring &ldquo in light of the severe and protracted downturn in the global oil and gas industry&rdquo , says its on-going initiatives to review options to preserve value for the group are continuing.

According to the group, it is in regular discussions with a number of its substantial creditors and has had dialogues with its key stakeholders, including its financial lenders and trade creditors. &ldquo The company recognises that certain members of the group are independently managed and, as such, the most appropriate form, as well as the timing, of restructuring applicable to each such member of the group will ultimately have to be decided by the board of directors of that particular entity,&rdquo says Ezra.

It also warns of the possibility of facing a going concern issue should its restructuring plans be &ldquo not favourably completed in a timely manner&rdquo .  

Shares in Ezra last traded at 3.4 cents before its trading halt on Wednesday.