Singapore-listed EMAS Offshore, a unit of Ezra Holdings, said it has started its restructuring process after signing a binding term sheet with potential investors.
The company intends to undertake the restructuring to substantially deleverage the group's balance sheet and strengthen its working capital position to enable its business to continue as a going concern, it said in a statement on Thursday.
In connection with the restructuring, EMAS Offshore, along with its units, Emas Offshore Pte Ltd and Emas Offshore Services Pte Ltd, voluntarily made an application to the High Court of Singapore.
The court application will block legal proceedings and ensure protection against the winding up of company and subsidiaries, giving Emas Offshore six months to complete the restructuring.
The company has been struggling since its parent Ezra Holdings filed for bankruptcy protection in earlier this year.
EMAS Offshore is also seeking legal advice after Perisai Petroleum Teknologi said it had regained the right to sell its 51 percent in a joint venture following the lapse of a settlement agreement between the two companies.
Shares in Emas were halted from trading on the Singapore Exchange.