Singapore bondholders brace for defaults as borrowers seek easier terms

Hong Kong

SINGAPORE dollar bondholders, already stung by the first default since 2009, face more companies struggling to meet the terms of their debt, after two oil and gas companies sought to extend maturities.

AusGroup Ltd and Otto Marine Ltd are among 10 Singapore-listed firms that have started a process to loosen bond vows this year, up from eight in 2015, according to Bloomberg-compiled data. That includes efforts to extend the maturity of debt and loosen covenants requiring companies to maintain certain leverage levels. Oil-related firms face S$1.4 billion of Singapore dollar bonds maturing through 2018, with S$325 million due by the end of the year, according to Bloomberg-compiled data.