Business

Swissco under judicial management

The High Court has given the go-ahead for beleaguered Swissco Holdings to be placed under judicial management.

The rig and vessel chartering firm, made the application last November after discussions to restructure its debt with key lenders ended in a stalemate. It owes $255 million to seven banks.

It also owes bond holders $100 million in principal that would be due next year.

Under judicial management, the group will be allowed to continue operating, though under court supervision, while attempting to turn the business around.

This is as opposed to liquidation, where firms are wound up and their assets sold.

The court appointed EY's Ms Angela Ee and Mr Purandar Rao as Swissco's judicial managers.

Swissco has been selling assets to pay off debt.

The firm said last week it has entered into a memorandum of agreement with Australian Maritime Systems Asset Holdings to sell a vessel for US$7.2 million (S$10.1 million).The vessel has been mortgaged in favour of OCBC as security for obligations under certain banking facilities extended by the bank.

Proceeds from the sale will be used to pay down the amount owed. - THE STRAITS TIMES

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