Teras Conquest 9, a wholly-owned subsidiary of Ezion, and SLH (Tianjin) Ship Leasing Co, has entered into a memorandum of agreement (MOA) for the sale of a liftboat, the Teras Conquest 9, at a consideration of US$18.5 million ($24.7 million).

The MOA was executed by UOB as Teras Conquest 9’s attorney-in-fact.

Under the MOA, a deposit will be placed with Teras Conquest 9 within five days upon the execution of the agreement. The consideration received will be used to pay off Ezion’s secured bank loans, and the mortgage over the vessel will be discharged.

According to the statement released, the disposal “will allow the group to stop the incurrence of further operating costs and liabilities and will also allow the group to reduce its outstanding liabilities via the partial repayment of the secured bank loans”.

The net book value of the vessel is at US$16.6 million.

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Based on the financial statements in 3QFY2020, the net losses generated for the nine-months period ended September 2020 is US$42.0 million.

The gain generated is estimated to be at US$1.4 million.