The High Court of Singapore has issued a winding up order against Lewek Champion, Emas Offshore’s subsidiary.
In addition, Andrew Grimmett and Lim Loo Khoon, both of Deloitte & Touche LLP, have been appointed as joint and several liquidators of Lewek Champion.
In March this year, Hai Jiang 1401, the owner of the pipelay construction vessel Lewek Champion and a unit of China’s ICBC Financial Leasing, terminated a bareboat charter after Emas Offshore defaulted to make payment of around US$1.6 million under the charter agreement.
Based on the unaudited consolidated financial statements of Emas Offshore for the financial period ended November 30, 2016, the company owed some $68.8 million to Lewek Champion. Accordingly, the winding up order made against Lewek Champion may result in a material impact on the financial position of the Group.
To remind, EMAS Chiyoda Subsea (ECS), the sub-sub-charterers of Lewek Champion, has filed for Chapter 11 under U.S. Bankruptcy Code, as well as the parent company and the guarantor to the bareboat charter Ezra Holdings.