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Christopher Langner

Let This Be a Lesson, Singapore

Ezra's financial woes were foretold. Was it a good idea to ease payment terms?

In few areas is hindsight as instructive as finance. Investors who survive the bad times learn their lesson and when the same situation comes around again, they know how to react.

Singapore bondholders are getting a schooling now on their rights and the wisdom of not forgoing them on the cheap. On Tuesday night, Ezra Holdings Ltd. and its Japanese partners put their offshore oil-services joint venture into bankruptcy in the U.S. EMAS Chiyoda Subsea Ltd. filed for Chapter 11 protection from creditors pending a reorganization. Singapore-traded Ezra is the biggest shareholder in the venture with 40 percent, with Chiyoda Corp. holding 35 percent and Nippon Yusen KK 25 percent, Bloomberg News's Steven Church and David Yong reported.