Swiber Holdings

Thread Rating:
  • 1 Vote(s) - 4 Average
  • 1
  • 2
  • 3
  • 4
  • 5
#71
(28-07-2016, 10:32 AM)CY09 Wrote:
(28-07-2016, 09:56 AM)marandaz Wrote:
(28-07-2016, 08:48 AM)dydx Wrote:
(28-07-2016, 08:26 AM)desmondxyz Wrote: Another O&G company go burst.....

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

and in just one single stroke!! Just also imagine for Swiber's bankers, bond holders..

FYI to everyone...

Swiber's bankers are from:
Bank Of Amercia
Citibank
DBS
Deutsche Bank

Info sent by my broker...

Hi Marandaz,

The full list of Swiber Principal bankers are:

BOA,citibank, DBS, Deutsche, ICICI, Maybank, Siam commercial Bank , HSBC, UOB, RHB 


Info obtained through annual report in 1 minuteSmile

Thank you for the full information...
Reply
#72
but largest is DBS followed by UOB then BoA Smile

Didn't even go JM means equity holders all can go CDP collect share cert already
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Think Asset-Business-Structure (ABS)
Reply
#73
Since 2006, the total dividend distributed by Swiber = 4cts.
There are multiple placements and 1 right issue.

IPO price : 57cts.
Reply
#74
Collapse of weak players is good for big players !
“risk comes from not knowing what you’re doing.”
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.
Reply
#75
Game over. Who needs to go to Universal Studios to ride a roller coaster?

2006 IPO price was $0.355. I remember the share price hit $3.80 at some point so some people could have made 10x their money. And now - zero.

(28-07-2016, 09:51 AM)CY09 Wrote: I am interested to know how much the receivables, construction in progress (inventories) and PPE are worth when they are being liquidated. It will give us a rough guage to the value of companies's assets such as Ezion, Ezra and even Penguin

Their current stated book value is in the region of USD1.5 billion. It will take a 30% discount to the sale of these assets to wipe out equity holders (which is possible). After which, it is down to how much haircut each bondholder will take.

Also, wondering if this means now the entire staff at Ezion HQ in Singapore will be let go.

There are only a few big items on the 31 Mar 2016 balance sheet (currency: USD).

1. Cash $130m
2. Trade receivables $526m
3. Other receivables $176m current, $77m non-current
4. Investment in Associates $141m
5. PPE $678m

So what is the liquidation value of these assets?

1. Cash

Par, $130m.

2. Trade Receivables

Heavily discounted since any progress payments will be disputed as Swiber will not be able to finish the work (breach of contract). Only completed contracts have any chance of full collection, and most likely the retention sums (typically 10%) will not be paid since Swiber is unlikely to be able to provide warranty service/rectification. So a 50% blanket discount would not be unfair.

Value: $263m.

3. Other receivables

From the 2015 annual report, these are obviously working capital loans to various parties, mainly associates and joint ventures. Virtually no chance of collection. 100% impairment would be wise.

Value: Zero.

4. Investment in Associates

The 2015 annual report lists them out. Except for Vallianz, all are private companies. Virtually no chance of a sale at reasonable prices.

Vallianz is listed on SGX, so the 26.45% holding can be sold. Given the large stake in Vallianz and poor sentiment, probably a 15% discount will be needed. Vallianz' market cap is $129m, a 26.45% stake at 15% discount is $29m.

For the other associates, likely value is zero as the other shareholders are unlikely to pay meaningful amounts to take over Swiber's stakes (and share of liabilities), and 3rd parties are unlikely to buy in.

So realizable value is $29m.

5. PPE

It is not clear what the realizable value is, but since it is a distressed sale in a weak market, a 20% impairment would not be unfair.

Value: $542m.

Estimated total liquidation value: $964m.

Total Liabilities: $1,427m.

Verdict
===
In order of seniority:

Banks: Bank loans of $332m are secured against PPE, insurance payouts, earnings and trade receivables. 100% recovery.

Trade Creditors: Trade payables are $280m. 100% recovery.

Note Holders: Unsecured. $534m principal against $352m remaining after paying banks and trade creditors. Estimated 66% recovery.

Shareholders: Zero.

===
On 31 Mar 2016, cash on hand was $130m. The letters of demand as of 27 July 2016 totalled $25.9m. There should have been plenty of money on hand to make payment.

However, although there was $130m of cash, trade payables were $280m. Swiber had to collect a meaningful proportion of the $526m trade receivables, otherwise it would not be able to pay the trade creditors. Most likely, it realized that it would not be able to collect, and would therefore become insolvent. Hence, the filing for liquidation.

This is of course assuming that there was no fraud or theft going on.

As usual, YMMV.
---
I do not give stock tips. So please do not ask, because you shall not receive.
Reply
#76
(28-07-2016, 11:04 AM)specuvestor Wrote: but largest is DBS followed by UOB then BoA Smile

Didn't even go JM means equity holders all can go CDP collect share cert already
Anyone care to explain to me the impact of swiber on DBS & UOB? I thought the victims would be the bond holders, how would the banks be affected?
Reply
#77
^^The banks loaned to Swiber, trade financing term loan or otherwise

Interestingly on another forum people saying the EV is $1.25b. Most of the EV is debt...

Like I said many people don't understand the purpose of EV... anyhow apply and hai-si-lang

VBs should refrain from using EV methodology unless u are taking over the company. Like I said EV and EBITDA was a rule-of-thumb number during the 80s M&A mania.
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Think Asset-Business-Structure (ABS)
Reply
#78
(28-07-2016, 03:04 PM)MINX Wrote:
(28-07-2016, 11:04 AM)specuvestor Wrote: but largest is DBS followed by UOB then BoA Smile

Didn't even go JM means equity holders all can go CDP collect share cert already
Anyone care to explain to me the impact of swiber on DBS & UOB? I thought the victims would be the bond holders, how would the banks be affected?

Care to explain why banks will not be affected in your opinion?
Reply
#79
(28-07-2016, 03:51 PM)marandaz Wrote:
(28-07-2016, 03:04 PM)MINX Wrote:
(28-07-2016, 11:04 AM)specuvestor Wrote: but largest is DBS followed by UOB then BoA Smile

Didn't even go JM means equity holders all can go CDP collect share cert already
Anyone care to explain to me the impact of swiber on DBS & UOB? I thought the victims would be the bond holders, how would the banks be affected?

Care to explain why banks will not be affected in your opinion?
 
I thought bro d.o.g. explained it in earlier post?  Cool
Reply
#80
Swiber Files for Liquidation as Singapore Probes Lapses
http://www.bloomberg.com/news/articles/2...bes-lapses
You can find more of my postings in http://investideas.net/forum/
Reply


Forum Jump:


Users browsing this thread: 5 Guest(s)