Forland Subsea informed that EMAS AMC AS has defaulted on charter payment for the LCV/IMR subsea vessel “Lewek Inspector” due to financial distress.

According to Forland, the company is behind on the payment for the month of October 2016, due November 30, 2016 and is ‘unable to settle the outstanding charter hire for the time being’.

The Lewek Inspector, built in 2013, is under a long-term contract with EMAS CHIYODA Subsea.

Ezra’s subsea services business, EMAS AMC, became a joint venture EMAS CHIYODA Subsea when in August 2015 Japan’s ECS player Chiyoda signed a binding memorandum of understanding to invest in EMAS AMC. The joint venture welcomed another partner in June this year when Nippon Yusen Kabushiki Kaisha (NYK) acquired its 25% stake.

EMAS AMC AS’ obligations under the charterparty are guaranteed by Ezra Holdings. As reported earlier today, EMAS is looking for a short standstill in regards with another chartered vessel, and also part of EMAS CHIYODA fleet the Lewek Connector. The obligations under the charterparty for this vessel are also guaranteed by Ezra.

Forland said it will assess and explore the consequences of the payment default and the options available to it, including the remedies available to it under the charterparty.

Subsea World News Staff