Swiber Holdings

[corydorus]

Here's more info http://business.asiaone.com/news/the-last-days-swiber

"But fears that AMTC would not be able to make the May 31 deadline prompted Swiber to ask DBS for help with redeeming the $130 million note due soon afterwards.

This proved no solution. Ms Tee said DBS was unable to assist given the "tight deadlines". As the pressure grew, another meeting was held with DBS to discuss a bridging loan and this yielded some results. In anticipation of the AMTC funds, Swiber got a bridging loan of US$85 million from DBS on June 2."

- See more at: http://business.asiaone.com/news/the-las...GN4jI.dpuf

[specuvestor]

To specuvestor, i think the reason why dbs continued to lend is either 
1) they didnt expect swiber to play such a game
OR
2) they know swiber will declare bankrupt so they were trying hard to throw it some life support

but then again it is hard to please people, some say dbs play a social role, so dbs should save swiber with more loans . On the other hand, this same group of people say dbs is not being prudent in making loans to a leveraged organisation.

Is swiber playing a game or a game is playing them

The old adage of if u owe the bank $10k u are afraid of the bank; but if u owe the bank $10m the bank is afraid of u, applies here. Plus what I've been saying that O&G is strategic to Singapore so I'm not surprised with The Development Bank's exposure to the sector though surprised at the singular exposure to Swiber

Those who think DBS has a social role and those who take a capitalistic view are generally not the same group of people. It is of course possible that there are those with the former philosophy but are current share holders of DBS, who will exhibit strong cognitive dissonance

What I'm surprised is Swiber not actively engaging DBS at the last 3 weeks but unilaterally deciding to liquidate if AMTC funds not in. If I am MAS I will be investigating AMTC and the holding of the redeemed bonds.

[weijian]

http://www.straitstimes.com/business/swi...-by-demand

Advise: Do your own due dilligence

The storyline is so predictable. In 2008, it was the Minibonds/Pinnacle Notes/High Notes (CDOs) that were celebrated when they were sold a couple of years earlier during a time where interest rates (prospective returns) were low, and people were more fearful of missing out, than losing. When the tide recedes, those that were swimming naked were exposed and start to declare their innocence. Those that didn't bother (or didn't dare) to take the punch bowl away while the party was raging, now stands on moral high ground wearing their 20/20 hindsight spectacles. As usual, those who fed the ducks when they were quacking, already have their meat now. Those ducks that quacked, now chokes. Again, history does not repeat itself but it certainly rhymes.

So what's next? Perpertuals? Retail bonds? Exotic ETFs? Private equity chasing after social startups?

[weijian]

What I'm surprised is Swiber not actively engaging DBS at the last 3 weeks but unilaterally deciding to liquidate if AMTC funds not in. If I am MAS I will be investigating AMTC and the holding of the redeemed bonds.

Well, Swiber already managed to "squeeze" partial payments just before due date for that 2 bond repayments (130mil and 75mil) which got rejected initially. My cynic guess is that they already "got what they wanted" and so the job is done and there is little need for more engagement.
Not too much details were discussed on the legality of the deal between AMTC and Swiber though. It also sounds just about legally right to redeem those due bonds (regardless of who holds them). Well, if Aaron doesn't want to pay, and you could now take from Paul to pay Joe, then Joe's a pretty lucky man! Poor Aaron though!

[GPD]

UPDATE ON CLAIMS RECEIVED BY THE GROUP
http://infopub.sgx.com/FileOpen/SHL%20-%...eID=416269

I am seriously wondering if Swiber was really doing any proper work.

[whatamidoing]

UPDATE ON CLAIMS RECEIVED BY THE GROUP
http://infopub.sgx.com/FileOpen/SHL%20-%...eID=416269

I am seriously wondering if Swiber were really doing any proper work.

From what I can read on the papers about DBS, seems like their private bankers have some homework to do - getting clients to leverage 2x on a non-investment grade bond will not be seen positively by well heeled clients. This will be a huge blow to their franchise.

[GPD]

An example of how capable Swiber's mgmt is and how close eyes SGX is.

Here is how Swiber answered SGX on the delay of the US$710mil West.
SGX Query 1©
c)Why did the Company not make an announcement at the time of first knowledge of the delay or non-fulfilment of the material conditions?

Company’s response
The announcement regarding the delay of the Project was released by the Company on 8 July 2016 during the Company’s trading halt which commenced on 4 July 2016. As mentioned in 1(b) above, there has not been any non-fulfilment of any material condition in the award letter.

So SGX asked Swiber why they didn't announce on the first knowledge of the delay. Swiber replied they did. On the 8 July? So Swiber only release there is a delay one and a half year later? And SGX simply accept this? Complete rubbish!

And they spent US$2mil on project which haven't been commissioned? I think the Court should made Swiber produce the receipt of these US$2mil to see if they are been spent on PPE/inventory in preparation (which showed poor mgmt) or just executive flying first-class to talk to client while staying in 6-star hotel.

[CityFarmer]

This might remove the undue "blame" on DBS's decision to extend its last loan to Swiber...

(not vested both in Swiber and DBS)

AMTC in breach of agreement, say Swiber interim judicial managers

THE appointed interim judicial managers (IJMs) of Swiber Holdings said in a statement issued on Thursday that AMTC is in breach of the terms of a subscription agreement for preference shares in Swiber Investment Limited (SIL).

The statement also said no representative of AMTC has contacted the IJMs following AMTC's claim in an Aug 6 report by The Business Times that it has flown a representative to Singapore last week to work on the deal with Swiber. AMTC also told BT the deal with Swiber was still alive.

The statement reiterated that SIL has engaged legal advisers to advise on the next legal course of action to enforce its rights against AMTC pertaining to the preference share subscription agreement that both parties signed on June 9.

The IJM statement in reference to a July 11 announcement by Swiber Holdings, the listed parent company of SIL, said the subscription agreement signed on June 9 called on AMTC to fork out US$200 million for 1,000 preference shares issued by SIL.

Following the signing of the agreement, AMTC had confirmed in writing to SIL that the former had satisfactorily completed its due diligence and SIL had fulfilled all its obligations under the subscription.

The completion date of the transaction was amended to June 29 by mutual agreement in writing on June 25 between the two parties. On June 27, AMTC asked for further extension of the deadline to make payment but SIL refused.

AMTC is therefore in breach of the terms of subscription agreement, the statement said.
...
Source: Business Times Breaking News

[CityFarmer]

The latest update on Swiber...

Survival is still possible for Swiber, say interim judicial managers

SINGAPORE (Sept 5): Swiber Holding’s interim judicial managers (IJMs) said on Friday that the oil and gas company could be saved as its major suppliers, vendors and creditors have indicated interest in aiding the group to complete its ongoing projects.

In a report filed in the High Court, the IJMs believe there is a “reasonable prospect” of achieving at least one of its objectives. These include the survival of the company or part thereof, receiving approval for a scheme of arrangement with Swiber’s creditors, or a better realisation of assets than in liquidation.

The IJMs, led by Bob Yap, Head of Advisory at KPMG Singapore, noted that the prospects for saving Swiber depend on its ability to complete its US$1.67 billion ($2.3 billion) worth of secured projects, followed by a restructuring exercise under judicial management.
...
http://www.theedgemarkets.com.sg/sg/arti...l-managers

[ksir]

Found this interesting interview with Swiber exCEO (CEO then):
http://www.sgx.com/wps/wcm/connect/sgx_e...s-20150626

Try to forget the hindsight bias and see if you can tell what's wrong?! Honestly without looking at numbers (BS), I can't tell.