Swissco to file for interim judicial management as bank lenders pull the plug

SINGAPORE - Debt-saddled Swissco Holdings will file for interim judicial management over the next few days, it said on Monday.

The decision comes as its main lenders have rejected the company's financial restructuring plan, the rig and vessel chartering group told The Straits Times by phone.

UOB is Swissco's largest lender, followed by DBS. Swissco carries S$255 million of bank debt owed to seven banks.

Chief executive Tan Fuh Gih told The Straits Times: "Due to the current circumstances, we're no longer able to operate as a going concern, and are prepared to file for interim judicial management."

Chairman Lim How Teck said the company is preparing its paperwork and will file over the next few days.

Swissco has a market value of about S$35.1 million. The shares last traded at 5.2 cents on Oct 10 before trading was suspended.

Swissco also owes bond holders S$100 million in principal that would have come due in 2018.

Mr Lim noted that bond holders are likely to get very little in return when the company goes under judicial management, while shareholders can expect to get nothing.