The board of directors of S&E made a statutory declaration on 11 August that S&E “cannot by reason of its liabilities continue its business.”
Aaron Loh and Angela Ee, both care of Ernst & Young Solutions LLP, were appointed as joint and several provisional liquidators of S&E, and a meeting of creditors and members has been scheduled on 23 August.
S&E had faced winding up threats from Ezion Investments relating to claims amounting to approximately $522,112 arising from various joint ventures entered into between the two firms for the ownership and management of three rigs.
OSV player Swissco acquired S&E for around $230m back in July 2014 as part of the former’s venture into the rig owning business. The acquisition of S&E comes with four drilling rigs.
Swissco had reasoned back then that offshore exploration and production activities were expected to remain active on anticipation of rising oil prices and energy demand.
Global oil prices, however, slipped shortly after Swissco’s acquisition of S&E, sending the offshore sector into a prolonged recession marked by lingering oversupply and lacklustre activities.
In April this year, the Singapore court approved the application made by Swissco to be placed under judicial management after the debt-ridden company failed to receive support from its major creditors.