Ezion Holdings has agreed to offload an offshore wind turbine installation vessel for $18.5m, the company confirmed in a regulatory filing.

The unit has been sold to EBO Investment Holdings Ltd, which is described as a holding company that holds investments in a fleet of offshore vessels.

The 72 metre-long Singapore-flagged Teras Ocean (built 2006) was built in China by Nantong Jiaolong Heavy Industry Development Co.

Ezion said the memorandum of agreement was executed by Singapore’s DBS Bank as “attorney-in-fact” of the seller, pursuant to a power of attorney granted to the bank as mortgagee under certain financing agreements in respect of the unit.

The Singapore-listed vessel operator said the price tag of $18.5m was arrived at following arm's-length negotiations on a "willing buyer, willing seller" basis.

It said its decision to sell the unit was also motivated by the funds and time required to activate the vessel as well as a lack of employment prospects in the current market.

The buyer has to pay $1m as a deposit within five banking days and will pay the balance consideration of $17.5m upon the completion of the purchase.

Ezion said proceeds received from the disposal will be used to repay the group’s secured bank loans and the mortgages over the vessel will be discharged pursuant to the disposal.

Earlier this month, Ezion saw Malaysian floating production, storage and offloading specialist Yinson Holdings walk away from a deal to rescue the struggling company.

Ezion lenders reportedly could not agree to Yinson’s revised proposal for a higher debt haircut, according to Maybank offshore industry analyst Liaw Thong Jung.

Despite its current problems, Ezion recently emerged favourably in the latest annual Singapore Governance and Transparency Index.

It jumped from 282nd to 85th place in the annual report in what was an otherwise mixed report card for Singapore’s listed marine-related companies.