Swiber subsidiary completes vessel disposal

A SUBSIDIARY of beleaguered offshore and marine group Swiber Holdings has managed to dispose of a vessel on Tuesday.

It said in a filing to the Singapore Exchange that its indirect wholly-owned subsidiary, Swiber Atlantis, has managed to sell its vessel, known as Sea Horizon, to WAG SPV I, LLC.

The company had said in a filing on Monday night that the consideration for the proposed disposal is US$10.25 million.

It was to be satisfied in cash. The sum is less than the average valuation range from two valuations of US$11 million to US$13 million. The net book value of the vessel is US$10.05 million as at March 31, 2016.

The vessel was mortgaged to DBS Bank. Hence, the proceeds from the proposed disposal will be used by Swiber to pay down the amounts owing under the DBS facilities, it said in Monday's release. DBS previously said that it has about S$700 million exposed to Swiber.