Swiber Holdings will know its fate by early October. The Singapore offshore company, which backtracked from liquidation to seek judicial management 10 days ago, has now been handed a guideline to how the process towards judicial management will go.
Following a judge pre-trial conference last Friday three KPMG employees were put forward as interim judicial managers. They will submit a brief interim judicial managers’ report to Singapore’s High Court by August 19. A more full report will be handed to the court by September 2, while another court date to discuss the matter has been set for September 5 with all decisions on the future of the company to be made at the Supreme Court by no later than October 3.
Swiber became the most high profile Singapore casualty of the offshore downturn – its demise sparking a rout of other listed offshore stocks on the Singapore Exchange.
“Highly geared companies exposed to oil and gas sector with weak cash flows would remain under pressure,” Joel Ng, an analyst at KGI Fraser Securities, said in a recent report. “The pressure on bank stocks would also be significant and may lead to less support from lenders and shareholders for any fundraising in the future.”