Casualties to date
1. Technics Oil & Gas
Offshore services provider – integrated compression systems and
process modules, amongst others
Filed for judicial management in end May 2016
Net gearing of 0.49x as of Mar 2016 was below sector average
Main banker: UOB
2. Linc Energy
Upstream E&P – Unconventional gas, coal deposits
Delisted from the ASX to float on the SGX in late 2013
Entered into voluntary administration in Apr 2016
3. Lime Petroleum
Upstream E&P with exploration licenses
65% owned by SGX-listed Rex International, 35% by Gulf Hibiscus,
subsidiary of Malaysian-listed Hibiscus Petroleum
Filed for winding up application on Mar 2016
4. Swiber Holdings
Offshore Engineering, Procurement, Commissioning (EPC) provider
Winding up application on 28 Jul 2016
Main bankers:
i. DBS - US$736m
ii. China Devt Bank – US$131m
iii. ICICI Bank (India) – US$51m
iv. UOB: US$35m
5. Swissco Holdings
Engaged in vessel and rig chartering, as well as repair
Owes S$255m to seven banks
a. UOB is the largest lender
b. Followed by DBS
Debt restructuring plan went into a stalemate as lenders were
unwilling to take a substantial hair cut in a proposal tabled by a
Chinese investor
Filed for interim judicial management in Nov 2016
Those with bonds that have undergone/undergoing restructuring
1. Ausgroup
Provides fabrication, construction and maintenance services to
natural resources sectors in Australia and Asia
Main banker: DBS
S$110m, 7.45% notes due Oct 2016 restructured as follows:
o Maturity date extended till Oct 2018, with possibility of
another 12 month extension (to be approved)
o Interest rate from Oct 2016 to Oct 2017 – increased to
7.95% p.a.
o Interest rate from Oct 2017 to Oct 2018 – increased to
8.45% p.a.
Relatively easier to restructure as the group has assets (Port
Melville) as a form of security
2. Rickmers Maritime
A business trust which owns and operates containerships
Main banker: Eight banks listed in 2015 Annual report
including DBS and HSBC
OCBC Investment Research
Singapore Equities
17
S$100m, 8.45% notes due May 2017 proposed to be
restructured as follows:
o Redeem S$60m principal with issue of 1.32b new units
o S$40m outstanding repayable in 2023 with step-up
coupon rates
o Special upfront coupon payment of S$500k to be paid
to noteholders
Restructuring of other debt with lenders still ongoing
3. Marco Polo Marine
Engages in shipbuilding, repair and chartering of OSVs and
tugs and barges
Bankers include OCBC
S$50m, 5.75% notes due Oct 2016 restructured as follows:
o Maturity date extended till Oct 2019
o Additional interest of 1.5% p.a.; additional interest
payable in two instalments
Relatively easier to restructure as the group has assets as a
form of security (noteholders get second ranking mortgage
over Batam shipyard land)
4. KrisEnergy
Independent upstream company focused on production and
development of oil and gas in SE Asia
Company’s revolving credit facility transferred to single lender,
DBS from a few banks including HSBC and ANZ in the middle
of this year
S$130m, 6.25% notes due Jun 2017 and S$200m 5.75%
notes due Aug 2018 currently undergoing restructuring
The group has obtained the support of Keppel Corporation, its
major shareholder to underwrite a preferential offering
(S$140m of senior zero coupon notes with warrants for future
upside potential)
5. Perisai Petroleum Teknologi Bhd
Kuala-Lumpur listed offshore services firm that is an associate
of Ezra Holdings
Has been classified as a Practice Note 17 (PN17) company i.e.
insolvent
Previous attempts to negotiate with bondholders had failed
In order to maintain its Bursa listing, it must regularise its
financial position within 12 months
6. Ezra Holdings
Engages in OSV chartering, offshore fabrication, and subsea
work
S$150m, 4.875% notes due Apr 2018
o Waive any breach or potential breach of covenants
o Waive occurance of any event of default or potential
event of default, amongst others
7. Pacific Radiance
Engages in OSV chartering, repair
S$100m, 4.3% bond due Aug 2018
Loosened debt covenants of bonds (S$100m 4.3% due 2018)
last year
Has not undergone major restructuring of bonds besides this
They starting to sweat about social unrest in their country
