Swissco judicial managers table US$7.2m vessel sale
Singapore
THE interim judicial managers (IJMs) of Swissco Holdings announced before Thursday's trading close that a deal is on the table for the sale of a vessel at US$7.2 million to Australian Maritime Systems Asset Holdings Pty Ltd (AMSA).
The IJMs from EY and Swissco Offshore have on Wednesday signed a memorandum of agreement (MOA) with AMSA relating to the proposed sale of the 2014-built vessel, Coral Knight.
The total consideration for the vessel of US$7.2 million comprises US$172,000 in sales commission payable to Pareto Securities Pte Ltd and the balance of US$7.03 million to Swissco Offshore.
Coral Knight is currently bareboat chartered to AMSA up until April 29, 2017, or a date to be mutually agreed with Swissco Offshore Pte Ltd. The vessel is also mortgaged to OCBC Bank as security to facilities extended to Swissco.
Swissco's IJMs said that the company will seek a waiver from the Singapore Exchange to obtain shareholders' approval for the proposed vessel sale to AMSA.
In support towards the waiver, the IJMs cautioned among others, the event of Coral Knight being possessed by OCBC if shareholders do not grant the approval for the sale of the vessel.
OCBC can then exercise the right to take possession and dispose of the vessel. The IJMs said that under circumstances of a forced sale, the estimated vessel price is US$5 million, lower compared to the US$7.2 million agreed with AMSA.
The proposed sale of Coral Knight will also help Swissco pay down all the amounts owing under the OCBC facilities. It will also allow the discharge of the mortgage over Swissco Synergy, another vessel owned by the company, as security for the OCBC facilities, the IJMs said.
Swissco took the judicial management route last November after its main lenders rejected its debt restructuring plan.
