Swiber Holdings Limited, an offshore services company based in Singapore, has made an application to wind up the company following demands from credits.
The company also filed an application to place it in provisional liquidation, media sources reported.
“While business sentiment in the oil and gas industry remains depressed, the Group believes that the impact on shallow water field development and production activities, where Swiber is an established provider, will be lower,” the company’s Group President, Darren Yeo, had said in its first quarter results report.
Offshore Services Firm Goes Bankrupt
The company announced it made the application to Singapore’s High Court on Wednesday and the hearing is set for August 19, 2016.
The High Court of Singapore has appointed Cameron Lindsay Duncan and Muk Siew Peng, care of KordaMentha Pte, as the joint and several provisional liquidators of the company.
Following the application, the company’s Executive Director and Vice Chairman Francis Wong, Executive Director and Group Chief Financial Officer (CFO) Leonard Tay and its Executive Director Nitish Guptal, all resigned.
In the first quarter of the year, the company reported a net loss of US$200,000, while the Group revenue rose by 16% compared to the first quarter of 2015, mainly due to new contracts secured in the last 12 months despite depressed market conditions.
2,700 Oil Workers Left Jobless
Swiber is a global provider of engineering, procurement, installation and construction (EPIC) services to the offshore industry.
According to Swiber’s 2015 annual report, the company has nearly 2,700 employees worldwide and some 10,250 shareholders, a total of US$1.43 billion in liabilities and total assets of US$1.99 billion.
The company owns 51 vessels, but it is not certain whether it will be able to convert these into cash given the current downfall in oil prices.
Across the industry, the pace of bankruptcies is picking up, especially in the US, where 11 oil and gas firms had filed for bankruptcy this year, until May.
According to analysts, more bankruptcy filings are expected to take place throughout the year, with approximately a third of global oil and gas firms at risk of insolvency.