Sifting for signs of the next Swiber

THE fallout from the 2014 oil price slump has hit Singapore's shores, with the Singapore-listed marine engineering company Swiber Holdings Ltd recently defaulting on a coupon payment.

Swiber's collapse was sudden, and some discussions in the media have centred on whether market participants could have seen what was coming. Bondholders, creditors, and market observers have all looked for missed clues that could have indicated potential trouble.

So, what caused Swiber to fail and what lessons can be learned?

Chief among the warning signs was the steep industry downturn.…