Swiber unit mulling legal options after non-payment for US$200m preference share subscription

A Swiber float-over installation of a central processing platform in the Petronas-operated NC3 field development off Sarawak, Malaysia.
A Swiber float-over installation of a central processing platform in the Petronas-operated NC3 field development off Sarawak, Malaysia.PHOTO: SWIBER HOLDINGS

SINGAPORE - Mainboard-listed offshore engineering firm Swiber Holdings said on Monday (July 11) that AMTC Ltd has failed to comply with its obligation to make payment on June 29 of the subscription price of US$200 million (S$269.5 million) for preference shares in its wholly-owned subsidiary, Swiber Investment Ltd (SIL).

SIL on July 2 sent a letter of demand to AMTC pertaining to the non-payment of the subscription price, Swiber said in a filing to the Singapore Exchange. SIL has also engaged legal advisors to advise on its possible legal options.

SIL is still in discussions with AMTC in respect of the transaction, said Swiber.

Swiber said AMTC entered into an agreement on June 9 to subscribe for 1,000 preference shares in SIL for US$200 million. On June 25, AMTC confirmed to SIL that it would make payment of the subscription price so that such funds would be received by SIL on or prior to June 29, said Swiber. It added tha upon receiving this confirmation from AMTC, it was agreed that the completion of the subscription agreement would take place on June 29.

But on June 27, SIL was informed by AMTC that it wished to further extend the completion date, to which SIL responded and refused any further extension, said Swiber.