Swiber Holdings said on Monday the Singapore Exchange Securities Trading (SGX-ST) approved its application for a second extension of time through 28 July 2019, to submit a proposal to resume trade in its securities.
The company said it requested the extension because the resumption proposal was dependent on the proposed restructuring in judicial management, including the potential investment and/or injection of new business or assets by Seaspan Corp.
“The company believes that the proposed Seaspan transaction is crucial for the restructuring of the group’s debts and achieving the company’s eventual exit from judicial management, and if completed, is a step towards reviving the company as a going concern for the purpose of the resumption proposal,” Swiber said in a filing to SGX after the market close on Monday.
But because the talks over the Seaspan deal are still ongoing, Swiber expected to be better able to assess the transaction’s impact on the proposed restructuring plans only after there is more certainty the deal will proceed, the company said.
In October, Swiber had said it agreed to a proposed US$200 million investment from containership operator Seaspan in a deal that will bolster the troubled offshore construction company’s LNG power project in Vietnam.
Under the proposed deal, Seaspan will make the investment in two tranches, with the first an initial US$20 million in cash in exchange for new ordinary Swiber shares giving the NYSE-listed company 80 percent of the Singapore company’s enlarged share capital, Swiber said in October.
The remaining US$180 million will be invested in a subscription for new preference shares to be issued by Equatoriale Energy, a wholly owned subsidiary of Swiber, it said in October.