Singapore's Ezion Holdings has blamed "prolonged weakness" in OSV markets for the loan default experienced by its joint venture POSH Terasea.
Its partner in the company, PACC Offshore Services Holdings (POSH), revealed the default involving an unnamed lender this week, and said it faced an impairment of $42m.
Ezion has an effective 25% stake through its share in POSH Terasea co-owner Terasea, which also involves Seabridge Marine Services.
It said: "POSH Terasea has been operating in market conditions that have seen prolonged weakness and remain very challenging due to, amongst other things, the uncertainty in the oil prices that has affected the national oil companies and multinational oil majors’ capital expenditure in exploration and drilling."
The total amount due, arising from the default and cross defaults, is $34.21m, it added.
This will not have any material impact on the group, it said.
POSH had said the lender called in the $27.6m outstanding on ship financing loans and a revolving credit facility.
These were granted to its 50%-owned venture POSH Terasea and secured solely by five anchor-handlers owned by the JV: the 13,500-hp Salvanguard and Salviscount (both built 2004), and the 12,240-bp Salveritas, Salviceroy and 12,000-hp Salvigilant (all built 2007).
