Could the completion of S$2.3b projects save Swiber from sinking?

Its construction arm also has a potential S$826.5m order book.

Swiber group’s woes may be far from over but support from major stakeholders in completing ongoing projects may save the company from winding up.

According to Swiber’s release, the Interim Judicial Managers (IJMs) believe that the group’s ability to complete some S$2.3 billion (US$1.67 billion) worth of secured projects could pave the way for a restructuring exercise that would lead to a better outcome for creditors. Aside from this, Swiber Offshore Construction has a potential order book of about S$826.5 million (US$608 million).

IJMs said key stakeholders including major suppliers, vendors, and creditors have expressed willingness to back the completion of ongoing projects. They received a total of 24 expressions of interest including proposals from potential investors.

“The IJMs believe that under their plan, there is a “reasonable prospect” of achieving one or more of the three objectives of a judicial management, which are: i) the survival of the company, or the whole or part of its undertaking as a going concern; ii) the approval under Section 210 of the Companies Act of a scheme of arrangement between the companies and/or their creditors; and iii) a more advantageous realisation of assets would be effected than in a winding up,” Swiber’s release elaborated.

Swiber clinches on its strength in engineering and construction of upstream projects. The delivery of projects already won would be a crucial milestone positive for the recovery of the company, the IJMs added.