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From Ince Gordon Dadds

Swiber Holdings Limited: Update

05.08.2016

Swiber Holdings Limited, a mogul in the business of providing world class support services to the offshore oil and gas industry, made waves on Thursday 28 July when it applied to the Singapore court to be wound up. Just one day later on Friday 29 July, after negotiations with its majority creditor(s), it applied to the Singapore court to withdraw its winding up application and seek judicial management instead. On 2 August it applied to discharge the provisional liquidators appointed with its original winding up application.

What this represents, in a nutshell, is that there is hope that Swiber Holdings Limited will survive the difficult financial straits it is in with a judicial manager in place.

Why?

In order to obtain a judicial management order, Swiber Holdings Limited will have to show the Singapore court that one or more of these purposes will be achieved through placing the company under judicial management: (i) the survival of the company as a going concern; (ii) the approval of a compromise or arrangement between the company and persons such as its creditors; (iii) a more advantageous realisation of the company’s assets would be effected than on a winding up. 
Any of these three purposes would be of positive value to Swiber Holdings Limited’s business and contractual counterparties.

The application for judicial management is fixed for pre-trial conference on 5 August and for open court hearing on 19 August 2016.

Meanwhile, certain types of actions are prohibited by statute such as any steps to enforce any charge on or security over Swiber Holdings Limited’s property or to repossess any goods in the company’s possession under any hire-purchase agreement, save with leave of the Singapore court and on such terms as the court may impose.

Our team will continue to keep you updated on these developments. For more information, please contact your usual Ince contact or Ms. Felicia Tan, Director at our Singapore alliance firm Incisive Law LLC.