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Singapore rig services firm Swissco says unable to pay interest on bond
October 12, 2016 / 2:36 AM / a year ago

Singapore rig services firm Swissco says unable to pay interest on bond

SINGAPORE, Oct 12 (Reuters) - Swissco Holdings, which provides rig and vessel chartering services, said it would not be able to pay interest on a S$100 million ($73 million) note, the latest Singaporean firm in the offshore services industry to disclose debt woes.

Swissco said it was not able to make a coupon payment of about S$2.9 million due on Oct. 16 on a 5.7 percent note maturing in 2018. But it said it expects to be able to fund current operations from cash and revenue as well as possible asset disposals.

Singapore’s offshore and marine industry has been pummelled as clients cut spending on the slide in oil prices. Oilfield services firm Swiber Holdings, which initially filed for liquidation, gained court approval last week to place itself under judicial management.

Swissco said in a statement that Ernst and Young, whom it has appointed as a financial adviser, was actively working on a debt restructuring plan and it invited noteholders to form an informal steering committee.

Swissco’s debt stood at $221.6 million at end-June.

Its shares were halted on Monday pending an announcement and Swissco has asked for the suspension to be kept in place. Prior to the trading halt, the company had a market value of about $26 million.

$1 = 1.3735 Singapore dollars Reporting by Aradhana Aravindan; Editing by Edwina Gibbs

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