Swissco Says Unable to Meet Interest Payment Due on Oct. 16by
Company cites tight liquidity and frozen credit lines
Swissco has taken steps to cut costs and sell some vessels
Swissco Holdings Ltd. is unable to meet an interest payment of S$2.86 million ($2.08 million) due Oct. 16 on its medium-term notes, according to a company presentation filed to the Singapore Exchange.
The Singapore-listed company, which supplies rigs and support vessels to oil and gas explorers, cited its tight liquidity position and said its credit lines are frozen. It has taken steps including reducing costs and selling selected vessels, it said.
Southeast Asia’s oil and gas industry is being hobbled by reductions in capital spending by energy explorers after crude prices slumped. Swissco’s distress comes after three companies defaulted on bonds and at least seven debt restructuring proposals in Singapore in the past year, and the local-currency junk-bond market suffered its worst rout in at least four years last quarter.
As of June 30, Swissco had the equivalent of $147.5 million of debt owed to banks payable in 2016 to 2020, as well as $74.1 million of notes maturing in April 2018, according to the filing. The company is inviting noteholders to form an informal steering committee, with the next meeting expected in four weeks, it said.