Singapore's Oil-Dependent Industries Are Still Under PressureBy
The price of crude may have stabilized, but the same can’t be said for the industries in Singapore whose fortunes depend on oil.
Nam Cheong Ltd. said on Monday it filed an application on Oct. 6 for a moratorium on its $424 million of debt, just a week after Ezion Holdings Ltd. sought to restructure its $2 billion of debt. The two cases highlight enduring pain from the slump that took crude close to $25 a barrel last year.
The fallout has been concentrated in Singapore, an energy industry hub. There have been more than S$1.4 billion ($1 billion) of local bond defaults since late 2015, largely by companies providing offshore vessel services to major oil explorers, Bloomberg data shows. Commodity trader Noble Group has also sold assets and obtained waivers from lenders to ease a cash crunch.
Here are some of the major ongoing debt restructuring cases of Singapore-based companies, involving both local and dollar-based bonds:
- Nam Cheong
- China Fishery/Pacific Andes Resources
- Global A&T Electronics
- Noble Group