Interim judicial managers of Singapore’s Swissco, a debt-burdened provider of offshore rigs and vessels, have confirmed it is in negotiations with its compatriot Ezion Holdings for the sale of four jointly-owned rigs.
The managers of Swissco issued a clarification on Wednesday regarding an article published by the Business Times in which the news agency claimed that the company was “in final talks” with Ezion for the sale of the rigs.
According to the Business Times article, Ezion would take over four rigs co-owned by joint ventures between the two companies for a total consideration of over $16 million.
Swissco confirmed in its response that confidential discussions were ongoing between the company and Ezion Investments, a wholly-owned subsidiary of Ezion Holdings, regarding the sale of the assets. However, according to Swissco, the terms of the proposed transaction have not been finalized or agreed upon.
Regarding the $16 million price tag mentioned in the article, the managers clarified that if a deal is reached it would be for less than that stated in the article.
In case the two parties reach an agreement for the rigs, Ezion would pay the agreed amount to Scott & English Energy, a wholly-owned subsidiary of Swissco, which is Ezion’s joint venture partner in the four rigs.
Swissco and Ezion have the following four rigs under joint ownership, three jack-up drilling rigs, the GSP Atlas, GSP Fortuna, and GSP Orizont, and one jack-up accommodation rig named Strategic Excellence.
Regarding Swissco’s current status, the company filed an application to be placed under judicial management on November 21, 2016, after it had failed to reach a debt restructuring deal with creditors. The company reached an impasse with its major lenders, citing significant gap between the group’s aim of sustaining its business in the long term and the position of the lenders.
The Singapore High Court put Swissco Holdings and its subsidiary Swissco Offshore into interim judicial management on November 25, 2016. On September 30, 2016, the group’s total liabilities were $291.6 million.
Offshore Energy Today Staff