SINGAPORE — Financially embattled rig and vessel chartering services provider Swissco Holdings and its wholly-owned subsidiary Swissco Offshore have applied to the courts to be placed under judicial management.
“The board of directors of Swissco Holdings Limited wishes to announce that the company and its wholly-owned subsidiary Swissco Offshore Pte Ltd have filed applications in the High Court of the Republic of Singapore on 21 November 2016 for orders that they be placed under judicial management pursuant to section 227B of the Companies Act (Cap. 50), as well as for orders that interim judicial managers be appointed pending the hearings (of the applications),” the company said in an aftermarket statement filed with the Singapore Exchange (SGX). Swissco added it will provide further updates as may be appropriate.
Many companies in the offshore oil and gas services sector — a key industry in Singapore — have been struggling to meet debt commitments after a rout in global oil prices led to a scaling back of projects. Judicial management — a process that allows a financially distressed company the room to return to financial health under court supervision — was also sought by oilfield services firm Swiber Holdings.
Swissco had signalled the move a week earlier, after hitting an impasse with major lenders.
“A significant gap persists between the group’s aim of sustaining its business in the long term and the position of these lenders. As such, the Group is unable to get an agreement on the terms of the restructuring plan,” it said in its Nov 14 filing with the SGX.
Last month, loss-making Swissco failed to pay interest on a S$100 million note due in 2018 while its total debt stood at S$255.7 million at end-September. The company named DBS Bank, Oversea-Chinese Banking, United Overseas Bank as its principal bankers in its 2015 annual report.
Trading in Swissco’s shares has been suspended since Oct 12. - AGENCIES
http://www.todayonline.com/business/swissco-files-judicial-management
“The board of directors of Swissco Holdings Limited wishes to announce that the company and its wholly-owned subsidiary Swissco Offshore Pte Ltd have filed applications in the High Court of the Republic of Singapore on 21 November 2016 for orders that they be placed under judicial management pursuant to section 227B of the Companies Act (Cap. 50), as well as for orders that interim judicial managers be appointed pending the hearings (of the applications),” the company said in an aftermarket statement filed with the Singapore Exchange (SGX). Swissco added it will provide further updates as may be appropriate.
Many companies in the offshore oil and gas services sector — a key industry in Singapore — have been struggling to meet debt commitments after a rout in global oil prices led to a scaling back of projects. Judicial management — a process that allows a financially distressed company the room to return to financial health under court supervision — was also sought by oilfield services firm Swiber Holdings.
Swissco had signalled the move a week earlier, after hitting an impasse with major lenders.
“A significant gap persists between the group’s aim of sustaining its business in the long term and the position of these lenders. As such, the Group is unable to get an agreement on the terms of the restructuring plan,” it said in its Nov 14 filing with the SGX.
Last month, loss-making Swissco failed to pay interest on a S$100 million note due in 2018 while its total debt stood at S$255.7 million at end-September. The company named DBS Bank, Oversea-Chinese Banking, United Overseas Bank as its principal bankers in its 2015 annual report.
Trading in Swissco’s shares has been suspended since Oct 12. - AGENCIES
http://www.todayonline.com/business/swissco-files-judicial-management
