Swiber

[Throttle2]

Unemployment is definitely going higher than historical levels, the way i see it.

And i see quite a bit of high dollar jobs eliminated.

 

Hang in there fellas.

It is not going to be nice.

 

Really not nice.

[Enye]

no scared no scared

 

confidence for the future

 

 

Singapore junk bonds slump as Swissco seeks restructuring  

    

OCT 4, 201611:40 AM

[sINGAPORE] Singapore's junk-bond market is suffering its worst rout in at least four years as debt restructurings spread among shipping and oil-and-gas service companies.

High-yield notes in the local currency from borrowers in Singapore slid 1.9 per cent last quarter, the most in an IHS Markit Ltd index going back to 2012. Rig and vessel chartering group Swissco Holdings Ltd added to the list of firms seeking to reorganise debt Tuesday.

It appointed Ernst & Young Solutions LLP to assist in the refinancing and restructuring of S$100 million of notes maturing in 2018, according to an exchange filing.

"The refinancing plan is to allow the company to have an optimised debt structure, with sufficient time to manage its liabilities and growth in the present industry conditions," Swissco said in the statement. The company is also engaging in discussions with bank lenders and holders of preference shares of two units in the group, it said.

 

 

 

Three bond defaults in the past year and at least seven restructuring proposals have shaken Singapore's local debt market, prompting the government to tighten oversight of private banks and aid businesses caught up in a global oil and shipping slump.

PT Trikomsel Oke, Pacific Andes Resources Development Ltd and Swiber Holdings Ltd have missed payments on S$875 million of local notes since November.

Rickmers Maritime, AusGroup Ltd, Marco Polo Marine Ltd and Perisai Petroleum Teknologi Bhd are also in various stages of seeking leniency from creditors.

"What they are all doing now is trying to push back the maturity of the bonds, conserve the cash," said Joel Ng, an analyst in Singapore at KGI Fraser Securities Pte.

"Charter rates are still weak. Even if they want to dispose assets to pay back debt I think it remains challenging for now."

Swissco sold the 5.7 per cent notes in Oct 2014 in a deal managed by Oversea-Chinese Banking Corp, according to Bloomberg data. The securities were last quoted at 47.5 Singapore cents on the US dollar, according to prices from DBS Bank Ltd. The company will hold an informal meeting with note holders on Oct 10, before the next coupon payment on Oct 16.

BLOOMBERG

 

[Enye]

chin chin chye chye also have $7-8 million lying around to invest in junk bonds

 

Singaporeans really rich........except me

 

 

Singapore millionaire, 77, joins bondholders uniting in workouts

Jerry Tan, a 77-year-old retired Singaporean businessman, was among dozens of bondholders in the city who joined forces last week to submit their demands as more companies seek to restructure debt payments. 

PHOTO: ST FILE

OCT 4, 20166:54 AM

[sINGAPORE] Jerry Tan, a 77-year-old retired Singaporean businessman, was among dozens of bondholders in the city who joined forces last week to submit their demands as more companies seek to restructure debt payments.

"The only way to put ourselves in a position of some strength is to come together as a group," said Mr Tan, who said he owns more than S$8 million of notes.

"The whole bond market is really bad and you can expect a lot more defaults. The authorities should step up to protect investors and Singapore's reputation as a major financial centre."

Mr Tan was among a crowd of housewives, former traders and entrepreneurs who gathered outside a trustee's office to deliver a demand for immediate payment on S$100 million of notes issued by shipping trust Rickmers Maritime, which is seeking a debt-equity swap.

 

 

A separate group issued a similar notice of acceleration on S$125 million of bonds sold by Malaysian oil services company Perisai Petroleum Teknologi Bhd, after talks on a reorganisation broke down.

Three defaults in the past year and at least seven restructuring proposals have shaken Singapore's reputation as an Asian finance hub, prompting the government to tighten oversight of private banks and aid businesses caught up in a global oil and shipping slump.

The city is also reeling from a penny-stock crash, the worst quarter for home prices in seven years and the highest bad loans since 2009.

"For financially-savvy investors, they need to know what they're buying into and not just look at the yields," said Benedict Koh, a professor of finance at Singapore Management University. "In workout situations, they must acknowledge that a haircut is inevitable, get some independent advice and decide whether the discount is fair or too deep."

Singapore's high net-worth individuals rose 27 per cent between 2009 and 2015 to 103,600, according to Capgemini SA, becoming major buyers of higher-yielding notes. While their ranks include former traders and executives, many were classed as wealthy investors based on the apartments they live in rather than their ability to absorb losses.

The Monetary Authority of Singapore said last month it is working to boost investor safeguards investors by year-end, while the government plans to enhance legal provisions for debt restructuring.

Rickmers isn't expected to revise its debt-equity swap proposal despite the bondholders' action, Soeren Andersen, chief executive officer of Rickmers Trust Management, the manager of the trust, said on Sept 28.

Its 8.45 per cent notes are trading at 35 cents on the dollar, according to DBS Bank Ltd prices.

"So far, the company's proposals have been most inequitable to bondholders," said Jeffrey Sia, a retired trader who owns less than S$1 million of Rickmers bonds. "We will stand united to protect our interests."

Perisai didn't reply to two e-mails seeking comment on its plan to defer its bond repayment by four months, which was rejected by bondholders on Monday. Investors that pool their holdings beyond a 25 per cent threshold are allowed to make demands for immediate repayment. Its 6.875 per cent notes were at 55 US cents.

"Yes, it's our responsibility that we bought the bonds but the company can't just brush us aside," bondholder Cheng Fong Kiew said after rejecting the plan.

Investors holding 25 per cent of Pacific Andes Resources Development Ltd's S$200 million in defaulted 2017 notes, trading at 15 US cents, are getting legal advice amid restructuring. Swiber Holdings Ltd missed payments on S$460 million of bonds and the oil services provider said any liquidation outcome would return 2 US cents on the US dollar for unsecured creditors.

"Bondholders were treated very roughly" in recent cases, said Lee Ka Shao, a former hedge fund manager who now runs a family office in Singapore.

"If bondholders are not in the know, they could be easily ran over because there is no platform for them to group and there is no process for going through a fair restructuring."

BLOOMBERG

 

 

[Ktglfc]

Conclusion: there are still lots of rich millionaires ppl around ...

[Throttle2]

The risk in such bonds is very clear.

Unrated, highly leveraged and $250k a pop for AIs.

Putting a large chunk of one's retirement money into such sector and name specific instruments are clearly aggressive moves. Many of them are simply looking at the upside and not the downside.

 

They can make accelerated demands on payment but whether there is money to be paid is another question.

Edited October 4, 2016 by Throttle2

[Blueray]

Swiber's application for judicial management approved by High Court

 

http://www.straitstimes.com/business/companies-markets/swibers-application-for-judicial-management-approved-by-high-court

[Blueray]

Ezra gets SGX extension to release full-year results by Nov 29

 

 

NOV 6, 20164:24 PM

 

EZRA Holdings Limited has been granted an extension of time from the Singapore Exchange (SGX) to announce its unaudited financial results for the full year ended Aug 31.

 

As a result of the extension, the group will be announcing its results by Nov 29, Ezra said on Saturday.

 

The beleaguered firm had sought an extension as its Malaysian associate Perisai Petroleum Teknologi Bhd landed in further trouble, raising the question of whether Ezra needed additional impairment in its investment in Perisai; the vessels jointly owned by the group and Perisai; as well as the existing contracts performed by these vessels.

 

Kuala Lumpur-listed Perisai is facing a winding-up petition from an unhappy bondholder while its 51 per cent-owned unit SJR Marine (L) Ltd received legal notice from a bank requiring repayment on a loan.

 

Perisai has declared itself insolvent after defaulting on S$125 million worth of 6.875 per cent bonds due earlier on Oct 3; its bondholders had on the same day rejected its proposal to restructure the notes.

 

Ezra is Perisai's largest shareholder with a 19.47 per cent stake through two units. With the Perisai bond default, Ezra's joint-venture loan facilities with Perisai have also reportedly been affected through cross-default clauses.

 

http://www.businesstimes.com.sg/companies-markets/ezra-gets-sgx-extension-to-release-full-year-results-by-nov-29

 

[Wt_know]

simi sai? lol

ezra is the largest shareholder of many sai ... ho say liao

Edited November 6, 2016 by Wt_know

[Throttle2]

[Blueray]

Swissco to file for interim judicial management

 

 

Debt-saddled Swissco Holdings will file for interim judicial management over the next few days - the third energy-related firm here to take that option in recent months.

 

The decision comes as the main lenders have rejected the rig and vessel chartering group's debt restructuring plan, the firm told The Straits Times yesterday.

 

United Overseas Bank is Swissco's largest bank lender, followed by DBS Bank. Swissco carries $255 million of bank debt owed to seven lenders, which it had planned to pay off via asset sales and the conversion of debt to equity.

.....

 

http://www.straitstimes.com/business/swissco-to-file-for-interim-judicial-management

[Blueray]

Swiber under investigation by CAD

 

 

SINGAPORE'S white-collar crimebusters have come knocking on the doors of Swiber Holdings.

 

Swiber said on Wednesday it has received a notice dated Nov 15 from the Commercial Affairs Department (CAD) stating that it is now investigating an offence under the Securities and Futures Act (Chapter 289).

 

CAD has requested access to information concerning the firm, Swiber Offshore Construction Pte Ltd, Pape Engineering Pte Ltd and Swiber Corporate Pte Ltd from Jan 1, 2012, till now.

 

These include corporate secretarial documents, all announcements made on Singapore Exchange including draft versions and comments made by directors or other relevant personnel, relevant accounting records and order books, documents pertaining to certain projects, and relevant technology equipment and corporate emails.

 

"The company will cooperate fully with the CAD in its investigations and will make announcements as and when there are further significant developments with regard to this matter," Swiber said.

 

http://www.businesstimes.com.sg/companies-markets/swiber-under-investigation-by-cad-0

 

hmmm ... corporate boardroom indiscretion ?

[Kusje]

Orbi good.

 

This is because they cheated investors saying that they were awarded a billion dollar project a few years back. In actual fact, the project was not awarded yet, just highly likely to be awarded to them at that point of time.

 

At current oil prices, the chance of the project being awarded to them at that price range are close to zero.

[Blueray]

Orbi good.

 

This is because they cheated investors saying that they were awarded a billion dollar project a few years back. In actual fact, the project was not awarded yet, just highly likely to be awarded to them at that point of time.

 

At current oil prices, the chance of the project being awarded to them at that price range are close to zero.

 

yes, quite likely. they already kena from SGX for reporting a USD700m Africa project as pipeline when it was just LOI / due diligence stage for something like 18 months.

[Kusje]

yes, quite likely. they already kena from SGX for reporting a USD700m Africa project as pipeline when it was just LOI / due diligence stage for something like 18 months.

 

Yes, this is the one I am talking about.

 

Seems like they used this award to cheat DBS and other lenders to loan them $$$.

 

DBS leh. Half the money 50% of 700m sgd is ours 

[Blueray]

Yes, this is the one I am talking about.

 

Seems like they used this award to cheat DBS and other lenders to loan them $$$.

 

DBS leh. Half the money 50% of 700m sgd is ours 

 

I cannot remember the numbers exactly but I think excluding the Africa project, their order books would be around SGD300m only, not the SGD1.5b that they kept harping on.

 

Anyways, not impressed with their Directors, got problem first thing is say wind up and quit. Listed company lei. Not mum and pop shop hor.

[Duckduck]

Yes, this is the one I am talking about.

 

Seems like they used this award to cheat DBS and other lenders to loan them $$$.

 

DBS leh. Half the money 50% of 700m sgd is ours 

 

meanwhile director already stashed the "loan" overseas riao lol... dbs kena pwn big time

[Jamesc]

Why is it always the same bank?

 

Lehman now Swiber?

 

[The_Bear]

Amidst all these, how many top level executives walk away with a hefty pay out and sit out their days in a nice landed prop?