Swissco contagion in O&M sector contained for now

Singapore

THE beleaguered offshore and marine (O&M) sector has claimed another casualty, with Swissco Holdings set to apply for judicial management. But the contagion from a Swissco judicial management may be less widespread compared with Swiber Holdings' fallout, though industry watchers have warned that listed O&M players which have not advanced the restructuring of their balance sheets and business fundamentals may have their backs up against the wall.

Offshore drilling and offshore support vessel (OSV) player Swissco is the second listed O&M player to have taken the judicial management route after Swiber Holdings.

Swissco's chairman Lim How Teck acknowledged to The Business Times that the offshore drilling business which it first ventured into when the f…