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Pacific Radiance to make $10.1m provision for exposure to Swiber

Pacific Radiance to make $10.1m provision for exposure to Swiber
Offshore vessels owner and operator Pacific Radiance has updated investors that it plans to make a provision of $10.1m owed by Swiber Holdings, which has applied to be placed under judicial management.

Singapore-based Pacific Radiance stated it is “expected to make a provision of doubtful receivables of approximately $10.1m in respect of services to Swiber’s related entities.”

Pacific Radiance continued to say it “had previously served several letters of demand to Swiber’s related entities for recovery of the doubtful receivables, and will continue to pursue all legal avenues of recovery.”

The Singapore-listed OSV operator said it expected this provision to negatively impact its earnings for the financial year ending 31 December 2016.

Swiber told the Singapore Exchange that on 28 July its board of directors and the provisional liquidators held 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.

Swiber had on 27 July voluntarily filed a winding-up application at the High Court of Singapore, but this application has been withdrawn.