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Swiber Holdings shocks Vallianz with plan to participate in rights issue

The judicial managers of Swiber Holdings have announced an interest for Swiber to take part in the upcoming rights cum warrants issue of Vallianz Holdings.

Swiber still holds a 25.15% stake in Vallianz, who announced the rights issue in September to raise gross proceeds of up to S$143.8m ($106.1m).

Despite almost going into liquidation and not having funds to settle payments to noteholders, Swiber says it may wish to subscribe for up to 903,534,986 rights shares with up to 1,807,069,972 warrants for a total subscription amount of around S$18.1m ($13.1m).

Swiber is not looking to use cash it doesn’t have, and is proposing that the actual subscription amount payable to Vallianz be set off against outstanding amounts owed to Swiber.

In August, Swiber claimed Vallianz owed it $63.5m only for Vallianz to reject the claim. Vallianz claimed the two companies have had “substantial commercial dealings” where Vallianz also provides services to Swiber, leading to Swiber also owing money to Vallianz.

In response to the interest from Swiber for its rights issue, Vallianz has postponed an extraordinary general meeting scheduled on Monday next week as it considers the announcement from Swiber.

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Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.
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