Court approves judicial management for debt-laden Swissco

The debt-burdened rig and vessel charter firm reached an impasse with major lenders in 2016.
The debt-burdened rig and vessel charter firm reached an impasse with major lenders in 2016.PHOTO: SWISSCO HOLDINGS LIMITED

SINGAPORE (REUTERS) - A Singapore court on Friday (April 21) approved Swissco Holdings Ltd's application to be placed under judicial management after the debt-burdened rig and vessel charter firm reached an impasse with major lenders last year.

Judicial management is a process that gives a financially distressed company leeway to return to financial health under court supervision.

Singapore's offshore and marine industry has been hit by low oil prices, weak charter rates and delays to projects.

Oilfield services firm Swiber Holdings is also under judicial management. Last month oilfield services provider Ezra Holdings Ltd filed for U.S. bankruptcy protection.

The court approved EY's Angela Ee and Purandar Rao as Swissco's judicial managers.

As of end-September 2016, Swissco's outstanding debt repayable in one year or less was US$255.7 million (S$357.1 million).