Debt restructuring can be hurdle to O&M recovery

Singapore

MONTHS after Swiber Holdings threw in the towel and triggered a credit void in the embattled offshore & marine sector, industry players face the uphill task of restructuring their highly geared balance sheets or risk as analysts warned, not being able to hold out until the eventual rebound from a multi-year sectorial downturn.

The government has since stepped in with schemes to extend loans for new projects or bridge any short-term gaps in cash flows for SMEs, but neither of these apply to cash-tight small- to mid-cap O&M players. Market practitioners pointed to help coming for these industry players that will include updates to the existing legislative framework to better facilitate debt restructuring exercises possibly coming in 2017.