Singapore offshore firm Swissco Holdings told investors that it is unable to make coupon payments due next week on its S$100,000 5.7% notes due in 2018, according to Singapore’s Business Times.
Swissco called an informal meeting yesterday, and despite appointing financial advisors Ernst & Young Solutions last week the company was unable to present a plan on how it might refinance or restructure.
The company currently has four of its seven drilling rigs idle and the other three, jointly owned with Ezion Holdings, on hire but the charterer has not been making payments. The status of its OSV fleet is unknown but Swissco said it is marketing vessels for charter and for sale.
Swissco is currently holding $1.2m in working capital but has a monthly expenditure of $1.5m.
Company management pointed the finger towards compatriot firm Swiber Holdings, which is currently under judicial management, saying that the demise of Swiber caused a deal for a strategic investor to fall through and ruined the sale of a vessel due to the buyer losing financing.
