Vancouver-based shipping group Seaspan Corporation and Singapore’s offshore marine group Swiber Holdings have reached an agreement to terminate a proposed $200m investment deal.
According to Swiber, certain conditions precedent for the completion of the planned investment were not fulfilled before the December 31, 2019 deadline and no agreement was made between the parties for an extension of the long-stop date.
Under the proposed agreement, Seaspan planned to invest $200m into Swiber in two tranches to subscribe for preference shares in Swiber’s subsidiary Equatoriale Energy, upon securing the development stage of LNG-to-power project in Vietnam and achieving major project milestones, as it has seen LNG as a potential new direction to diversify its business.
The creditors of financially troubled Swiber, which is under judicial management, approved the restructuring proposal by Seaspan in May last year.
“The judicial managers remain open to considering other options for the restructuring of the company and Swiber Offshore Construction Pte. Ltd. and will provide updates on any material developments as and when appropriate,” Swiber said.
