With New York-listed Seaspan Corp dangling a rescue deal for debt-racked Swiber Holdings, the offshore and marine group's creditors are headed for a vote on the restructuring on May 29.
Judicial managers are recommending that the creditors opt for the bailout, arguing that the likely alternative would be liquidation, which could leave unsecured creditors with nothing.
The creditors' meeting has been scheduled for May 29, just two days before a court deadline, the judicial managers announced on Tuesday night.
More than 1,200 creditors, including bond holders via their trustees, can vote on the deal.
"Creditors may wish to note that the restructuring proposal does not require creditors to vote on any write-off or compromise of their debts at this stage," the judicial managers said.
The restructuring plan offers unsecured creditors new Swiber shares worth a 14 per cent stake, which could be diluted to 12.6 per cent.
Swiber's unsecured creditors could see a recovery rate of between 8.8 per cent and 10 per cent, while unsecured creditors of Swiber Offshore Construction might get 1 per cent to 1.2 per cent back, based on the equity value of the restructured group in five years as estimated by accountancy firm BDO.
Under a plan floated in March, container ship company Seaspan could plough up to US$200 million (S$272 million) into Swiber - which notoriously defaulted on bond payments from 2016 - in exchange for an 80 per cent stake in a new holding company for assets including five vessels.
Swiber has been under judicial management for 21/2 years, after it scuppered an earlier decision to ask to be wound up.
Haw Par Corporation
Haw Par Corporation yesterday announced that net profit for the first quarter ended March 31 rose 14.1 per cent to $22.07 million.
Group revenue increased 22.3 per cent year on year to $73.38 million on the back of increased demand for healthcare products, while earnings per share rose to 10 Singapore cents, up from 8.8 cents previously.
On its outlook, Haw Par said: "Global uncertainties could affect our operating businesses and valuation of our strategic investments.
"Healthcare's operating margin may decline further if the price of raw materials continues to increase."