Swee Joo defaults on debt

Kuala Lumpur: Malaysian shipowner Swee Joo Bhd has defaulted on its debt repayments. The Bursa Malaysia listed company said it had defaulted on repayments as cashflows were insufficient due to the low freight rates earned by its tanker business. In the nine month period ended 30 June Swee Joo reported a loss of RM38m, with revenues of RM264m. "The group's prospect is mainly dependent on the demand for shipping services which are seasonal and cyclical in nature and its ability to restructure its commitment with its creditors and lenders," the company said. [03/09/10]