High Court fixes Oct 13 for Swiber hearing

Singapore

AILING offshore firm Swiber Holdings announced on Fridaythat the Singapore High Court has fixed a full day hearing on Oct 13 for the judicial managers' applications for directions on third-party securities.

It also said in a Singapore Exchange filing that the High Court has appointed Dentons Rodyk & Davidson lawyer Geraldine Yeong Kai Jun as Young Amicus Curiae (Friend of the Court) to assist.

The High Court had granted the application to place Swiber Holdings and its unit Swiber Offshore Construction under judicial management (JM) in October last year.

More than 10 creditors, including Swiber's principal banker, DBS, put up no objection through their lawyers to the application for JM.

JM is a process that gives a financially distressed company leeway to return to financial health under court supervision.

In July, Swiber sought to extend the period under JM through to March 21 next year.

It was the first of a number of Singapore offshore companies to seek court protection amid the protracted slump in global oil prices, which started in June 2014.

While oil prices have since recovered somewhat, the crunch has already claimed several casualties.

Last November, beleaguered marine firm Swissco Holdings applied to be placed under judicial management as it struggled to stay afloat and was given the go-ahead by the High Court in April.

The firm owes S$255 million to seven banks, which it had planned to pay off through asset sales and the conversion of debt to equity.

And in March, Ezra Holdings filed for bankruptcy protection in the United States.