Not a wind-up, Swiber surprises with judicial management application

In a bizarre twist to Swiber Holding’s sudden collapse on Thursday the company has applied to be placed under judicial management rather than liquidation.

In statement to the Singapore Exchange Swiber its board of directors and the provisional liquidators had had discussions with the company’s major creditor, “who indicated that they are supportive of an application for the company to place itself into judicial management instead of liquidation”.

On Friday the company and subsidiary Swiber Offshore Construction had applied to be placed under judicial management and interim judicial management.

Swiber has also discharged the provisional liquidators and withdrawn its winding-up application.

The major creditor was not named but on Thursday Singapore's DBS Bank revelaed an SGD700m ($521.9m) exposure to Swiber.

Unlike like winding-up and liquidation, which effectively sound the death knell for a company, judicial management allows it to brought back to financial health via a court supervised process.

Adding to the confusion Swiber also issued a clarification that Thursday’s statement that group cfo Tay Gim Sin Leonard was infact incorrect and he remained in the post.

Posted 30 July 2016

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Marcus Hand

Editor, Seatrade Maritime News

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