Swiber revamp gets stakeholder support

Swiber revamp gets stakeholder support

Saving the Swiber group will hinge on support from stakeholders and its ability to complete some US$1.67 billion (S$2.3 billion) worth of secured projects.

This could pave the way for a restructuring exercise that would lead to a better outcome for its creditors than winding up.

This is what the interim judicial managers (IJMs) concluded in a report filed in the High Court on Friday, said Swiber in an announcement yesterday.

The company added that the IJMs had said in the same report that key stakeholders - including major suppliers, vendors and creditors - have expressed willingness to work with Swiber to support the completion of the ongoing projects.

Swiber said the IJMs pointed out that its key strengths are in the engineering and construction of upstream projects. Completing projects it had already won would be a crucial milestone; it would be "value accretive and positive" for the recovery of Swiber Offshore Construction (SOC).

According to Swiber, SOC (its main operating subsidiary) has a potential order book of about US$608 million for projects which it has submitted bids.

"The key personnel of SOC are still intact and have the necessary experience and credentials to complete these projects."

Swiber added that the IJMshave so far received 24 expressions of interest, including proposals from potential investors to provide equity or debt financing, asset financing and project financing.

The IJMs will evaluate such expressions of interest together with Swiber's management.

This article by The Business Times was published in MyPaper, a free, bilingual newspaper published by Singapore Press Holdings.

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