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Bankrupt Swiber pins business revival hopes on FLNG

Bankrupt Singapore offshore firm Swiber Holdings is pinning its hopes of a rebirth on the Floating LNG (FLNG) sector.

In what Swiber described as something that “could a step towards reviving it as a going concern” it has inked a non-binding term sheet to Interlink Power & Energy Holdings in Australia.

The move by Swiber, which is under judicial management, to acquire Interlink is part of a plan to enter the power sector and in particular the FLNG segment.

Interlink provides bridging power for up to five years through its Rapid Deployable Rental Power Solution using mobile dual fuel turbines.

FLNG was an Swiber was looking to enter before it spectacularly filed for liquidation in July last year, then reversing that decision to be placed under judicial management in October 2016.

A year on the proposed acquisition of Interlink is dependent on the restructuring of all Swiber’s debts and liabilities, an injection of $200m from new investors, and approvals from creditors, shareholders and judicial authorities.

“As part of the restructuring process, the judicial managers and Swiber management have been working on a business model and investment framework that we believe will bring strategic value to Swiber’s stakeholders and provide a sustainable business going forward,” said Bob Yap, head of advisory for KPMG Singapore, judicial managers for Swiber.

“It is clear that Swiber, notwithstanding its present problems, continues to retain a strong reputation in the global market for its engineering and execution capabilities. We believe that the acquisition of Interlink along with Swiber’s expertise will enable Swiber to provide a comprehensive solution for the supply of both short-term and long-term power, from land based to floating LNG power plants.”

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