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Penny Stock DBS Couldn’t Save Roils Singapore Oil Hub, Banks
- Swiber’s distress hurts as lenders including DBS count losses
- Energy-related companies hit as explorers slash spending
DBS Net Income Falls 6% to $780M
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With a market value of S$50 million ($37 million), Swiber Holdings Ltd. hardly seemed the kind of company to cause a ripple in the financial markets. Yet, the near-liquidation of the penny-stock firm has set off tremors in Singapore’s banking and energy industries.
The Singapore-based supplier to offshore oil and gas explorers, facing about $50.5 million of demands last month from various creditors, said July 29 that it seeks to operate under court supervision as it attempts to turn around its business. Two days earlier, it had filed a petition for liquidation, which was subsequently dropped following talks with lenders.