Swee Hong seeks High Court's help in debt restructuring deal

It wants to convert debt into equity.

Engineering company Swee Hong has turned to the Singapore High Court in a bid to restructure its debts.

Swee Hong has filed an application to convene a meeting of its creditors, and has also asked the court to extend a moratorium that stops proceedings against the company.

Swee Hong wants its creditors to approve a restructuring scheme that involves an initial write-off of a portion of the claims of the creditors, two opportunities for creditors to participate in a debt-to-equity conversion, and a series of “reverse dutch auctions” under which creditors may offer a discount on their claims.

In a filing with the SGX, Swee Hong said that it believes that there remains a “reasonable prospect of rehabilitating” its business if it is allowed to restructure its debt.