Press Statement: Ezra’s restructuring – Ensuring a fair deal for creditors and shareholders through IFA guidance

Date: March 12, 2018

SIAS refers to the recent announcement by Ezra on 1 March 2018 regarding the restructuring update of the company and a potential new investor. Given the continued downturn in the oil and gas sector, SIAS notes that creditors and shareholders are now in a position to realise their investment to some extent through the company returning eventually to trading.

Nevertheless, the proposed structure would see creditors and shareholders diluted to just 4 percent each of the enlarged entity. This will be a concern to shareholders and bondholders. SIAS proposes that SGX mandates the company to appoint an Independent Financial Advisor to opine on the proposed restructuring so as to ensure that the proposal is fair and reasonable to all stakeholders. Many noteholders and shareholders have suffered losses and, therefore, SIAS would like the stakeholders to be guided on the proposal as to its fairness.

David Gerald
President & CEO
Securities Investors Association (Singapore)