Swissco to file for ju­di­cial man­age­ment due to debt woes

The Sun (Malaysia) - - SUNBIZ -

SIN­GA­PORE: Sin­ga­pore’s Swissco Hold­ings Ltd, a debt-bur­dened provider of rig and ves­sel char­ter­ing ser­vices, said it has de­cided to file for in­terim ju­di­cial man­age­ment af­ter reach­ing an im­passe with ma­jor lenders.

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 un­til last year 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 – has also been sought by oil­field ser­vices firm Swiber Hold­ings.

“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,” Swissco said in a stock ex­change fil­ing late on Mon­day.

In Oc­to­ber, loss-mak­ing Swissco failed to pay in­ter­est on a SG$100 mil­lion (RM307 mil­lion) note due in 2018 while to­tal debt stood at SG$255.7 mil­lion at end-Septem­ber. – Reuters

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