Vallianz delays EGM as Swiber wants in on rights issue

Who owes whom?

This is not the first time the two companies claim one owes another.

Back in August, Swiber served Vallianz with letters seeking payments totaling some $63.5 million which the Swiber’s judicial managers claimed Vallianz owed to Swiber entities.

Vallianz said that it declined to make such a payment. The company said the nature of the relationship between Swiber and Vallianz, whereby the two companies have had “substantial commercial dealings” saw Vallianz providing services to Swiber, which also lead to Swiber owing to Vallianz.

Thus, Vallianz said “receivables due to the Vallianz Group that were owed by the Swiber Group “must be taken into account” when making payment request (63.5 million) by the Swiber Group from Vallianz.

At the time, Vallianz even acknowledged that as at June 30, 2016, it had owed Swiber some US$67.34 million, the amount larger that the one asked for by the interim judicial managers.

However, at the same time, Vallianz claimed Swiber Group owed it some $65.92 million.

Meanwhile, Swiber has to worry about creditors and mounting claims. The cash-strapped company has covered with several claims of outstanding payables which, as of October 6, amount to $246.1 million.

Also, in a statement on October 12, Swiber Holdings said it was unable to pay the upcoming coupon payment for the Series 014 SGD$ 160,000,000 7.125% Fixed Rate Notes due 2017 issued under the Company’s S$1,000,000,000 Multicurrency Debt Issuance Programme due on 18 October 2016.

Offshore Energy Today reported earlier that Swiber had applied to wind up the company following demands from creditors and requested to be placed under provisional liquidation back in July. The company withdrew its wind up application several days later and opted to go under judicial management.