Swissco Announced Completion of Assets Disposal
DISPOSAL OF (I) 50% INTEREST IN STRATEGIC OFFSHORE LIMITED (SOL), AND (II) GSP ATLAS, GSP ORIZONT AND GSP FORTUNA for a consideration of S$3.5 Million in cash
DISPOSAL OF 50% INTEREST IN STRATEGIC EXCELLENCE LIMITED (SEL) for a consideration of S$1.5 Million in cash
Swissco is selling the 3 vessels to entities controlled by Ezion Holdings. The 3 vessels formerly belong to an entity controlled by SOL known as GSP Entities, and as of 31st December 2016, GSP Entities had amount of loan outstanding approximately US$60.2 Million. The disposal of the 3 vessels is expected to be completed prior to disposal of SOL according to the Company.
Under the first disposal, the vessels were under bareboat charter to Grup Servicii Petroliere (Grup) and since October 2015, the Grup had stopped paying the charterhires to Swissco. As of 31st December 2016, the receivables from the Grup stood collectively at US$85 Million.
For the second disposal, SEL owns a vessel known as Strategic Excellence, and is currently under charterhire through THML (an entity belonging to Ezion Holdings) and in turn were being chartered to UIE FZE (a Company set up in Dubai) and in turn were chartered to a Mexican company called Delta with PEMEX as the ultimate user. Since April 2015, THML had stopped paying the charterhire to SEL, and as of 31st December 2016, the amount due from THML is US$19.3 Million and the amount of loan due for SEL creditors at the same time is US$25.7 Million. The amount was due from UIE and as the charter is still ongoing, the remaining value of the charter party is approximately US$22.7 Million for the vessel Strategic Excellence. Upon recovering and realizing the value of the charter party owed, Ezion shall make payment in the future to Scott & English (subsidiary of Swissco) according to a formula agreed and could expect to receive up to US$5.75 Million (from the period from 1st April 2015 to 31st December 2016).
The asset disposal action was taken in consideration of the survival of Swissco, claim management, and streamlining groups operations in lieu of current low oil price period. The Oil & Gas industry is facing a never seen before prolong downturn and questions had been raised about the Risk Management practices for the past few years.https://straitsjournal.com/swissco-announced-completion-of-assets-disposal/EnergyOil & Gasezion,gas,oil,osv,pemex,petroleum,scott & english,swisscoThe Judicial Managers (the 'JMs') of Swissco Holdings Limited (Judicial Managers appointed by Court) (the Company ') refers to its announcement dated 27 March 2017 (“27 March Announcement”) in relation to the foregoing subject matter. The JMs wish to inform shareholders that the Transactions (as defined in the 27...Editor [email protected]AdministratorThe Straits Journal