Oil and gas offshore support provider Ezra’s trading halt has been seen as a prelude to its liquidation, with Malaysian firm CIMB stating that the potential exposure for the Development Bank of Singapore (DBS) could be as much as $637m. The bank is also facing questions over whether it should have taken on more risk in the first place, given the risks posed by oil prices at the time. DBS could suffer the most should the liquidation route be taken, followed by OCBC Bank at $300m and UOB at $166m. The banks will have to make arrangements for the funds they are owed as they may be unrecoverable following the liquidation.
Oil and gas offshore support provider Ezra’s trading halt has been seen as a prelude to its liquidation, with Malaysian firm CIMB stating that the potential exposure for the Development Bank of Singapore (DBS) could be as much as $637m. Ezra had $989m of loans and bills owed to banks as of 31 August 2016. DBS could suffer the most should the liquidation route be taken, followed by OCBC Bank at $300m and UOB at $166m. The banks will have to make arrangements for the funds they are owed as they may be unrecoverable following the liquidation.