Swiber Holdings

(29-07-2016, 06:04 PM)yeokiwi Wrote:

(29-07-2016, 04:17 PM)CityFarmer Wrote: The company has filed winding-up application voluntary, rather than by creditors. It is more likely that, the management has given up without a real fight, with cash reserve of S$176 mil, and positive op cash flow position. I checked, the immediate amount on recent letter of demands were much less than that.

http://infopub.sgx.com/FileOpen/SHL%20-%...eID=414404

Why? I checked on the shareholders structure, there are 3 SSHs, with an estimated stakes of around 10%+-, inc deemed interest from an non-transparent BVI entity, Newshire Capital Limited.

Isn't another "orphan company" advocated by Mr. Yeo, from Yeoman Capital? I learned from Mr. Yeo, to avoid orphan companies i.e. companies without a strong major shareholder.

What do you think?

(not vested, and contribute a point for the postmortem)

Looking at another angle, the vessels will be selling at distressed prices and technically speaking, if the vessels will procure by another company, the company, with little debt, will be ready to take advantage of the recovery and make good profits.
Swiber, with all the debts, is unlikely to survive till recovery. Even if it manages to recover, all the earnings will be going to the banks/creditors.

How about push the timing back to IPO time, before the debt is piling up? I assume, similar shareholding structure since IPO.

Well swiber mgmt are not stupid..
They must have given up after failure to obtain any possible funding from any bankers...and after extracting maximum values for themselves...
...
Regulators shld check if they have duped the shareholders by giving false hopes and selling out prior to the end
..there seems to be lack of disclosure until the very end..prior to that they even announce winning contract..so many were caught off guard ..
A lot of investor needs answer as their money goes down the drain...

(29-07-2016, 01:27 PM)specuvestor Wrote: It's actually a very fine line between utopian and ignoramus. I am not a politician so I can be politically incorrect. I only know cats that can catch mice are good cats. US talks about freedom and hype up all the racial issues and now everybody has to be politically correct in their speech, even media and movies. Singapore catch a racist and we make sure he pays for it. FULL STOP. Not splashed across the media in the name of freedom of information or speech to incite more hatred and ostracized the police who are trying to do their job and as far as I know, also have mothers.

Sorry for the Friday rant.

Not relevant to the thread so I will keep it to the minimum: I disagree.

Fruit for thought, between Singapore and the US:
1. Which country is overall more successful, socially (social progressiveness) and economically (produced more innovators, entrepreneurs and visionaries)?
2. Which country is known for nurturing highly-educated talents that, more often than not struggled to venture out of the box?

Stifling different opinions may sometimes be convenient, but also stifles exchange of good ideas and allow bad ideas to persist.

In a turn of event, Swiber isn't going for immediate winding up as it has its largest creditor backing. Will be applying JM first

http://infopub.sgx.com/FileOpen/SHL%20-%...eID=415004

Looks like the approx 1000 jobs Swiber contributes here will be staying for a while. And unfortunately, this may mean the presence of more competition if the JM is approved.

Some consolation prizes:

1) Swiber changed their mind to appoint JM instead of liquidation.

http://infopub.sgx.com/FileOpen/SHL%20-%...eID=415004

2) CEO and other key executives are staying back.

http://infopub.sgx.com/FileOpen/SHL%20-%...eID=415003


A bit dramatic.... So would this be better for the creditors?

New development

JUDICIAL MANAGEMENT APPLICATIONS
http://infopub.sgx.com/FileOpen/SHL%20-%...eID=415004

CLARIFICATION ANNOUNCEMENT (Lost souls found)
http://infopub.sgx.com/FileOpen/SHL%20-%...eID=415003

LETTERS OF DEMAND (piling up)
http://infopub.sgx.com/FileOpen/SHL%20-%...eID=415002

Making a mockery of everything possible?

How to trust the management of this company ?
Believe some creditors will not be that passive now .

The banks pprobably woke up to the collateral damage to confidence swiber liquidation could have on its other O&G exposures......

swiber wont recover no matter what the JM does.............it's not a matter of bad business management, it is because of low oil prices

IMO, the oil downturn is going to be prolonged and we will not see a recovery of oil price above $60, $70 until 2019 and 2021 respectively.

With only about 500 mil of order book left (ex the african project), Swiber only has about a year of backlog to survive. And with the liquidation news dragging down its reputation, winning new orders is going to be hard. If things pan out as what I am typing, Judicial management will still turn to liquidation in a years time, unless Swiber decides to layoff 70% of its workforce within this time frame to meet the dwindling orderbooks or does major asset sale of its vessels

My own theory is that Swiber's Uturn was to soften the impact of job loss in our country (est about 1500 jobs here will be affected). So this is to ensure the layoff is gradual instead of full blown, of course the largest creditor has to agree to it.

If I were the small creditors in this loan deal, I will not agree to it and will demand my principal back or face my letter of winding up. It will be easier for the big creditor to take the rap and only get his principal back after a long time.