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 S$100 million ($71 million) note due in 2018 while total debt stood at $255.7 million at end-September.
Swissco said it is currently seeking legal advice on the preparation and filing of the necessary court documentation, which is expected to take place by the end of this week or early next week.
The company named DBS Bank Ltd, Oversea-Chinese Banking Corp Ltd, United Overseas Bank Ltd as its principal bankers in its 2015 annual report.
Trade in the company’s shares has been suspended since Oct. 12.
