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Swiber Holdings Limited Extends Results Announcement Date: What It Means For Investors

And the saga continues on at the beleaguered Swiber Holdings Limited (SGX: BGK).

The company first shocked the market back in July when it broke the news that it had filed an application to wind itself down.  But barely a few days passed before Swiber announced that instead of liquidating its business, it would be placed under judicial management. And amid all that hullabaloo, the company also defaulted on the coupon payment of one of its bonds.

Near midnight today, Swiber made known that an extension for the release of its fiscal second-quarter results (for the three months ended 30 June 2016) has been approved. The company had applied for the extension back on 12 August 2016.

As Swiber’s judicial managers were appointed only on 2 August 2016, they needed some time to understand the picture at Swiber and analyse the company’s financial position.

According to the extension announcement, Swiber can now release its second-quarter results at a date no later than 14 November 2016. This means that the company’s shareholders and bondholders might need to wait till November before they have better clarity on Swiber’s financial situation.

For perspective, Swiber ended the first-quarter of 2016 with a net debt to equity ratio of 160% and an interest coverage ratio of just 1.2. The company was also making losses in the past two quarters.

Foolish Summary

Swiber’s shares continue to be suspended from trading. With its high debt level and the fact that its assets are currently operating in an environment of very low oil prices, shareholders of Swiber should prepare for the worst case scenario of not being able to recover any of their investment capital.

Swiber’s largest creditor, DBS Group Holdings Ltd (SGX: D05), is working directly with the company to recover its loans and Swiber has received about US$135.9 million in claims so far.  Therefore, how much bondholders can recover from the company remains to be seen too.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Stanley Lim doesn’t own shares in any companies mentioned.