Oilfield services firm Ezra Holdings Ltd of Singapore filed for U.S. Chapter 11 bankruptcy on Saturday, blaming a prolonged slump in the energy industry.
The company had been trying to restructure and said in February it faced a “going concern issue” if it did achieve a favorable outcome.
Ezra is one of several Singapore offshore and marine services firms that have been hit by a downturn in oil prices since in 2014.
The company’s stock lost a fifth of its value in early March after it disclosed it had provided guarantees on nearly $900 million in liabilities and loans of Emas Chiyoda Subsea Ltd, an affiliate the also filed for U.S. bankruptcy.
“Oversupply of offshore supply vessels along with the influx of newly built vessels resulting in low competitive charter rates compounded the financial difficulties of Ezra’s business divisions,” said Robin Chiu, the company’s chief restructuring officer, in a court filing.
The company said it had unsecured loans of $272 million, owed to DBS Bank Ltd, $184 million owed to Oversea-Chinese Banking Corp Ltd and $108 million to a Singapore affiliate of HSBC Plc.
The company said in a court filing in the U.S. Bankruptcy Court in New York that it had up to $1 billion in assets and up to $500 million in liabilities.