Provisions back in focus as Sete Brasil gets bankruptcy filing nod

Singapore

SETE Brasil's bankruptcy filing approved before Thursday trading hours marked the first step forward towards removing the overhang over the biggest rig-building contracts on the order book of Keppel Offshore & Marine and Sembcorp Marine.

With the path cleared for the restructuring of Sete Brasil, the ball is once again in the court of Keppel O&M and SembMarine on whether further provisions will be made for the contracts from the rig-owning affiliate of Petrobras.

A Keppel Corporation spokesman maintained in a response to The Business Times: "The provision of S$230 million made in 4Q 2015 for our projects with Sete Brasil remains adequate for now."

"We are monitoring the situation closely. So far, we have not received any formal notification fro…