VALLIANZ Holdings is revising certain terms for the rights issue in its set-off and settlement agreement with Swiber Holdings.

Both parties had in May this year entered into an agreement to convert net payables to Swiber worth US$36.6 million into shares in Vallianz's capital through a proposed rights cum warrants issue. Any balance net payables to Swiber following the latter's subscription of any rights shares with warrants and any exercise of these warrants will be settled through further new equity in the future.

In an earlier exchange filing on Monday, both companies said that they have agreed to a change in issue price for each rights share and the exercise price for each new share upon the exercise of a warrant to 1.6 Singapore cents instead of the previously announced two Singapore cents.

In light of that, they have also further agreed on Tuesday that for Swiber's undertaking to subscribe for additional new shares if there were any unutilised owings by Vallianz, the issue price for each of the additional new shares will also be revised from two Singapore cents to 1.6 Singapore cents.

Except for these terms in the supplemental agreement, all other terms and conditions in the earlier set-off and settlement agreement remain in full force and effect, said Swiber.

Swiber, which is under judicial management, owns 20.9 per cent of Vallianz.