SINGAPORE - DBS Group has said its exposure to Swiber Group totalled about S$700 million but added that it expected to recover half the amount.
Swiber Group, the mainboard-listed offshore services firm, announced Thursday that it was winding up.
In a filing on SGX, DBS said the exposure to the Group comprised loans, bonds and off-balance sheet items.
"As the exposure was partially secured, DBS expects to recover half of it and will provide fully for the anticipated shortfall," it said in a statement.
"DBS will tap on its surplus general allowances and the new allowance charge will be lower, at about S$150 million," the statement added.
DBS further assured that its balance sheet remains strong and there is minimal impact on its capital adequacy ratio.
DBS is scheduled to announce its second quarter results in the first week of next month.
Swiber on Wednesday filed a petition to wind up and liquidate itself after facing US$25.9 million ($35.1 million) of demands from creditors.
A Singapore court will hear its application on Aug. 19, it said in filings.
Singapore Exchange Ltd. said on Thursday (July 28) that it will be undertaking a “thorough investigation” into developments at Swiber.
Founder and non-executive chairman Raymond Kim Goh resigned from his position as Vallianz Holdings' chairman and executive director overnight due to "health reasons".
Three other directors of the company, vice chairman Francis Wong, chief financial officer Leonard Tay and executive director Nitish Gupta have also quit, Swiber said on Thursday.
Earlier in the week Swiber revealed that a US$710 million project it was contracted for in West Africa had been severely delayed and another in Vietnam cancelled.