Singapore offshore operator Swissco Holdings says that it expects to be able to fund and sustain its current operations from cash, revenue from existing businesses and possible asset disposals. The statement comes after it told an informal meeting with noteholders on Monday that it was unable to pay interest on the notes due next week.
While Swissco is forming a steering committee of noteholders to work with Ernst & Young to develop a mutually agreeable restructuring plan, the company barely has enough cash reserves to make it to the next informal meeting with noteholders in 4 weeks.
Swissco has only three of seven drilling rigs on charter and the charterer is not making payments, while one of two accomodations rigs on charter is also suffering from non-payment. It also has a completed newbuild liftboat sitting idle in a Triyards shipyard in Vietnam since August and is suffering from low utilisation of its 35-strong OSV fleet.
Swissco says it is seeking work for the idle liftboat as well as the sale or charter of OSVs to raise funds, but has yet to provide a plan for its long-term survival.
The company is also locked in several arbitrations claiming $26.1m from Tyloo for outstanding charter hire payments and $5.2m from Nanjing East Star and Jiangsu Skyrun Shipbuilding related to refunds for the cancellation of shipbuilding contracts. It is also defending a$ 1.7m claim from US-based X-Drill
Meanwhile, Swissco has also moved to suspend its shares from trading on the Singapore Exchange.
