Embattled Singapore offshore operator Swissco Holdings has finally outlined a restructuring plan designed to save the company from bankruptcy.
At an informal meeting with investors yesterday the company asked noteholders to accept a debt for equity deal, outlined a bank refinancing it is working on, and revealed it is looking to scrap four of its rigs which lay idle.
Noteholders of Swissco’s $100m bonds were asked to swap $64m of principal for equity in the company while also deferring $10m to December 2020, a two year delay at a lower rate. The company also said it is looking reduce bank debts from $255m to under $80m, a debt level deemed necessary to attract potential investors.
In terms of assets, Swissco said it is looking to scrap four of its rigs that currently lay idle while it also planned to sell eleven of its 35 offshore support vessels to raise cash.
Meanwhile Swissco has been granted an order by the Singapore High Court restraining US-based X-Drill from proceeding with a statutory demand demanding the company be wound up over a $ 1.7m claim.