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IJMs present 'reasonable prospect' of saving company: Swiber
SAVING the Swiber group will hinge on support from stakeholders and its ability to complete some US$1.67 billion worth of secured projects - which could pave the way for a restructuring exercise that would lead to a better outcome for its creditors than winding up.
This is what the Interim Judicial Managers (IJMs) concluded in a report filed in the High Court on Friday, said Swiber in an announcement on Monday.
Swiber added that the IJMs had said in the same report that key stakeholders - including major suppliers, vendors and creditors - have expressed willingness to work with Swiber to support the completion of the ongoing projects.
Swiber said that the IJMs pointed out that the company's key strengths are in the engineering and construction of upstream projects. Completing projects it had already won would be a crucial milestone; it would be "value accretive and positive" for the recovery of Swiber Offshore Construction Pte Ltd (SOC).
According to Swiber, SOC (its main operating subsidiary) has a potential order book of about US$608 million for projects which it has submitted bids. "The key personnel of SOC are still intact and have the necessary experience and credentials to complete these projects."
Swiber added that the IJMs, led by Bob Yap (head of advisory at KPMG in Singapore), had disclosed that they have thus far received 24 expressions of interest, including proposals from potential investors to provide equity or debt financing, asset financing and project financing. The IJMs will evaluate such expressions of interest together with Swiber's management.
Swiber said that the IJMs believe that under their plan, there is a "reasonable prospect" of achieving one or more of the three objectives of a judicial management. They are: i) the survival of the company, or the whole or part of its undertaking as a going concern; ii) the approval under Section 210 of the Companies Act of a scheme of arrangement between the companies and/or their creditors; and iii) a more advantageous realisation of assets would be effected than in a winding up.