“Through RVOS, the group has grown steadily to become one of the largest offshore support vessel providers in the Middle East region where offshore oil and gas activities continue to be vibrant”.
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The banks are pushing for judicial management in attempts to recover more of their debt exposure to the Singapore-listed company, the people said, asking not to be identified as the discussions are private.
Last year, Swiber reported a net loss of US$27.4 million, against a profit of US$16.4 million in 2014.
Judicial management – a court-supervised process – seeks to rehabilitate potentially viable companies. “The company’s debt burden is quite high at US$1.43billion, and the proceeds of liquidation will first be used to pay off its debts and liabilities before going to common shareholders”.
Oil and gas services firms have aggressively tapped the local bond market, particularly in 2013 and 2014, but a subsequent collapse in oil prices, tumbling charter rates and delays to projects has sent the industry reeling.
The Singapore Exchange (SGX) has been closely monitoring the situation at Swiber Holdings and will be undertaking a thorough investigation into the developments in the company, Tan Boon Gin, its chief regulatory officer, said yesterday. Swiber’s shares, which were at S$0.109 each before trading was halted Wednesday, were worth more than S$7.50 in late 2007.
Singapore’s biggest lender, DBS Group Holdings on Thursday disclosed it had S$700 million exposure to Swiber while the city-state’s two other top banks have flagged concerns about loans to the sector.
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Swiber in June redeemed S$130 million 5.125 percent notes due 2016 and in July redeemed S$75 million 7 percent notes.
