Singapore's Swiber looks to revive business with move into power plants

Swiber Holdings

01/11/2017 14:11

SINGAPORE, Nov 1 (Reuters) - Singapore oilfield services 
firm Swiber Holdings  SWBR.SI , which is under judicial 
management, said on Wednesday it was in talks with potential 
investors and has plans to buy an Australian firm as it looks to 
diversify into power plant engineering services. 
    Facing hundreds of millions of dollars in debt, Swiber first 
filed for liquidation last year but later applied to be placed 
under judicial management, an administration process aimed at 
nursing the business back to health under the supervision of the 
Singapore Court. 
    The diversification into the power industry is important for 
Swiber as a recovery in the offshore oil and marine services 
market is at least a couple of years away, said the company's 
judicial manager, Bob Yap, head of advisory at KPMG in 
Singapore. 
    Taking a step in this direction, Swiber on Wednesday said it 
had signed a non-binding term sheet to buy Australia's Interlink 
Power and Energy Holdings, a services company for temporary and 
permanent power plants.  
    This is in line with the company's plans, that were in the 
works even before Swiber entered judicial management, to develop 
a floating liquefied natural gas-fired power plant.  
    "Our objective is to help (Swiber) revive. If it doesn't 
resuscitate and creditors vote against (the deal), nobody 
supports it, we will go into liquidation," said Yap. 
    "The ideal post-restructured Swiber structure is going to 
have a power division that gives sustainable income." 
    The proposed deal to buy the Australian firm is subject to 
several conditions, including securing new equity investors to 
inject up to $200 million into Swiber and the restructuring of 
all its debts and liabilities. 
    Swiber's judicial managers said discussions with several 
potential investors were continuing and that they expected to 
present creditors with a statement of proposals on the 
restructuring plan by the first quarter of 2018. 
    But there is "nothing signed at this stage", Yap said.  
 
 (Reporting by Fathin Ungku, Writing by Aradhana Aravindan; 
Editing by Himani Sarkar) 
 ((aradhana.aravindan@thomsonreuters.com; +65 6403 5659; Reuters 
Messaging: aradhana.aravindan.thomsonreuters.com@reuters.net)) 
 
Keywords: SWIBER HOLDINGS DEBT/