Allianz Middle East is to acquire the bulk of Singapore-based Swissco Holdings’ OSV fleet.
Swissco Holdings, which is currently under judicial management, said in a stock exchange announcement on 6 December that it had entered into an agreement with Allianz to dispose of “a substantial part of its [OSV] division.”
Twenty-two vessels are included in the contract with a put option for a further three. The vessels to be acquired include anchor-handling tugs, anchor-handling tug supply vessels, utility tugs workboats and crew boats.
The announcement noted that only three of the 25 vessels are currently on charter, with the remainder described as “minimally utilised or unutilised.” Fifteen of the vessels are currently mortgaged in favour of financial institutions. All vessels are being sold on an “as-is-where-is” basis. Should the put option not be exercised, the aggregate consideration for the disposal is US$20.5M.
Along with the OSVs themselves, Allianz will acquire all issued and paid-up ordinary shares in Swissco subsidiaries Swisscor Offshore Pte Ltd and Singapore Marine Logistics Pte Ltd, and a 49% stake in SWM Malaysia currently held by Swissco International Pte Ltd.
Swissco Holdings appointed Ernst & Young Solutions LLP as independent financial advisor to the group in the third quarter of 2016 to assist in refinancing and restructuring of the company’s notes. An application for judicial management was made in November 2016 and the group was placed under judicial management by order of the Singapore High Court on 21 April 2017. This order has been extended several times since, with the High Court most recently granting an extension on 19 November 2018 that will see the group remain under judicial management until 31 July 2019.
Asian Strategic Turnaround Ventures Pte Ltd had previously made an offer to acquire “a substantial part” of Swissco’s OSV division in September 2017.
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