Singapore's O&M crisis separates the men from the boys

AS cheap oil whacks the cash flow of Singapore's offshore and marine firms and cripple their ability to pay debt, two hallmarks - speed and deliberateness - are separating the men from the boys as the beleaguered firms seek noteholders' forbearance.

Bondholders' clemency is being severely tested as Singapore's bond market is hit by disconcerting pleas by companies seeking to push back debt maturity to buy more time for an action plan to ride the oil slump.

Firms such as AusGroup and KrisEnergy which manned up and gave noteholders heads up about their financial state way earlier have managed to win them over. AusGroup has managed to roll over its S$110 million notes for another two years while KrisEnergy managed to loosen its debt covenants late last year.