Post Reply
21-40 of 81
Also companies have traditionally assumed they can always rely on banks and other lenders to provide them loans as and when they desire. However, in this case of a prolonged downturn in the O& G sector, banks and lenders have turned cautious and getting a loan to fulfill a company' s obligations to its liabilities is now much difficult for companies in this sector. So, those companies whose balance sheets are weak and with high gearings could potentially face working capital needs and liquidity issues which could bring down an entire company if they are not careful.
jeremyow ( Date: 15-Nov-2016 13:30) Posted:
http://www.straitstimes.com/business/swissco-to-file-for-interim-judicial-management-as-bank-lenders-pull-the-plug
The $100 million principal owed to its bond holders will be due in 2018. The chairman Mr Lim noted that bond holders will get very little in return when the company goes into judicial management while shareholders can expect to get nothing. The NAV of Swissco as of 2015 annual report is around SGD 0.58 per share. So much has happened over the course of 10 months this year to bring down a company such that it is no longer an ongoing concern. Even if there is an NAV of SGD 0.58 per share carried on Swissco' s books, bond holders still will only get back very little return incurring losses on their principal. Shareholders will get back nothing at all.
This is a case study for investors to learn that debt management is an important focus for companies. We must be careful not to only chase after high profitability of a company in its revenues and earnings but also to be careful of the amount of liabilities carried on the balance sheet esp. the current liabilities which will come due within one year and any large amount of non-current liabilities could also become a timebomb when they come due in near future years.
If a company suddenly gets hit hard by a prolonged downturn in economy or its industry (for 5 years or more) and esp. if it does not have enough current assets that can be used to fulfill the current liabilities due or other non-current liabilities that could also come due over the next few years of the downturn, it could become a real issue for the company.
This does tell us not to be complacent but to always DOODD. As Warren Buffett puts it. His first rule of investing is not to lose money. The second rule is the same which is not to lose money as well. Protecting our capital is the first and foremost important thing for an investor before looking at his returns on investment.
A bond is guaranteed but it is only as good as the underlying issuer which guarantees the principal sum of the bond. If the underlying issuer (a bank or business collapse), there may not be a 100% guarantee that the underlying issuer (eg. Swissco' s case) can be able to fulfill its obligations to return the bond holders their principal sum even if the terms and conditions demand so. Thus, a bond is never 100% risk free. Make sure one really understand the financial strength of an underlying issuer (bank, company, government etc.) before making a bond investment for when hard times come, it may really hit hard on an issuer which may fall.
|
|
http://www.straitstimes.com/business/swissco-to-file-for-interim-judicial-management-as-bank-lenders-pull-the-plug
The $100 million principal owed to its bond holders will be due in 2018. The chairman Mr Lim noted that bond holders will get very little in return when the company goes into judicial management while shareholders can expect to get nothing. The NAV of Swissco as of 2015 annual report is around SGD 0.58 per share. So much has happened over the course of 10 months this year to bring down a company such that it is no longer an ongoing concern. Even if there is an NAV of SGD 0.58 per share carried on Swissco' s books, bond holders still will only get back very little return incurring losses on their principal. Shareholders will get back nothing at all.
This is a case study for investors to learn that debt management is an important focus for companies. We must be careful not to only chase after high profitability of a company in its revenues and earnings but also to be careful of the amount of liabilities carried on the balance sheet esp. the current liabilities which will come due within one year and any large amount of non-current liabilities could also become a timebomb when they come due in near future years.
If a company suddenly gets hit hard by a prolonged downturn in economy or its industry (for 5 years or more) and esp. if it does not have enough current assets that can be used to fulfill the current liabilities due or other non-current liabilities that could also come due over the next few years of the downturn, it could become a real issue for the company.
This does tell us not to be complacent but to always DOODD. As Warren Buffett puts it. His first rule of investing is not to lose money. The second rule is the same which is not to lose money as well. Protecting our capital is the first and foremost important thing for an investor before looking at his returns on investment.
A bond is guaranteed but it is only as good as the underlying issuer which guarantees the principal sum of the bond. If the underlying issuer (a bank or business collapse), there may not be a 100% guarantee that the underlying issuer (eg. Swissco' s case) can be able to fulfill its obligations to return the bond holders their principal sum even if the terms and conditions demand so. Thus, a bond is never 100% risk free. Make sure one really understand the financial strength of an underlying issuer (bank, company, government etc.) before making a bond investment for when hard times come, it may really hit hard on an issuer which may fall.
SWISSCO Habis!!!!!!!!!!!!!!!!!!!! Who next?? Robert Chua the previous Chairman laughing all the way. Admire you Robert for timely exit. Salute
WA so many good candidates to short , short gx rock
ysh2006 ( Date: 15-Nov-2016 08:55) Posted:
Who will be next ? viz Sembmarine,Ezion,Ezra,Vallianz, Pac Rad, Pec,Rotary,Munsiong,....any coy to add so that investors will be alert ! Now Vard privatised, who next ?..
Wind22i ( Date: 15-Nov-2016 07:49) Posted:
|
Well it seems now lenders wont hesitate to cutloss on oil & gas company if their plan to restructure etc doesnt seem viable.
Rather than throwing in more good money to recover the bad ones..
|
|
|
|
Who will be next ? viz Sembmarine,Ezion,Ezra,Vallianz, Pac Rad, Pec,Rotary,Munsiong,....any coy to add so that investors will be alert ! Now Vard privatised, who next ?..
Wind22i ( Date: 15-Nov-2016 07:49) Posted:
|
Well it seems now lenders wont hesitate to cutloss on oil & gas company if their plan to restructure etc doesnt seem viable.
Rather than throwing in more good money to recover the bad ones..
|
|
Yuzzoo maybe
Macqueen ( Date: 15-Nov-2016 08:40) Posted:
Dragonboy Ezra anytime suspend I will Tio trap again I will short geo and CNMC more meat 🍖
CraigFoo ( Date: 15-Nov-2016 08:36) Posted:
| Or CNMC.. Gold up $50 it only moves 4c to 5c. When gold drops it went down really fast. |
|
|
|
Dragonboy Ezra anytime suspend I will Tio trap again I will short geo and CNMC more meat 🍖
CraigFoo ( Date: 15-Nov-2016 08:36) Posted:
Or CNMC.. Gold up $50 it only moves 4c to 5c. When gold drops it went down really fast.
dragonboy76 ( Date: 15-Nov-2016 07:46) Posted:
| Go and short ezra lor. Still got 1 potential good target for |
|
|
|
Or CNMC.. Gold up $50 it only moves 4c to 5c. When gold drops it went down really fast.
dragonboy76 ( Date: 15-Nov-2016 07:46) Posted:
Go and short ezra lor. Still got 1 potential good target for u
Macqueen ( Date: 15-Nov-2016 07:43) Posted:
| Worse than ABL at least ABL can still trade this one totally trap short and Long banker win |
|
|
|
Well it seems now lenders wont hesitate to cutloss on oil & gas company if their plan to restructure etc doesnt seem viable.
Rather than throwing in more good money to recover the bad ones..
Go and short ezra lor. Still got 1 potential good target for u
Macqueen ( Date: 15-Nov-2016 07:43) Posted:
Worse than ABL at least ABL can still trade this one totally trap short and Long banker win
GuavaXF30 ( Date: 15-Nov-2016 07:37) Posted:
| Ezra. Writing on the wall too large to ignore |
|
|
|
Worse than ABL at least ABL can still trade this one totally trap short and Long banker win
GuavaXF30 ( Date: 15-Nov-2016 07:37) Posted:
Ezra. Writing on the wall too large to ignore.
Wind22i ( Date: 15-Nov-2016 07:32) Posted:
| Oil & gas counters one by one gone..
Scary thought of which one is next
|
|
|
|
Ezra. Writing on the wall too large to ignore.
Wind22i ( Date: 15-Nov-2016 07:32) Posted:
Oil & gas counters one by one gone..
Scary thought of which one is next
MichaelSchenker ( Date: 14-Nov-2016 18:50) Posted:
Shareholders, need only to read the last sentence...
http://www.sharejunction.com/sharejunction/postMessage.htm?topicId=9648& msgbdName=Swissco
Swissco to file for interim judicial management as bank lenders pull the plug
SINGAPORE - Debt-saddled Swissco Holdings will file for interim judicial management over the next few days, it said on Monday.
The decision comes as its main lenders have rejected the company' s financial restructuring plan, the rig and vessel chartering group told The Straits Times by phone.
UOB is Swissco' s largest lender, followed by DBS. Swissco carries S$255 million of bank debt owed to seven banks.
Chief executive Tan Fuh Gih told The Straits Times: " Due to the current circumstances, we' re no longer able to operate as a going concern, and are prepared to file for interim judicial management."
Chairman Lim How Teck said the company is preparing its paperwork and will file over the next few days.
Swissco has a market value of about S$35.1 million. The shares last traded at 5.2 cents on Oct 10 before trading was suspended.
Swissco also owes bond holders S$100 million in principal that would have come due in 2018.
Mr Low noted that bond holders are likely to get very little in return when the company goes under judicial management, while shareholders can expect to get nothing.
|
|
|
|
Oil & gas counters one by one gone..
Scary thought of which one is next
MichaelSchenker ( Date: 14-Nov-2016 18:50) Posted:
Shareholders, need only to read the last sentence...
http://www.sharejunction.com/sharejunction/postMessage.htm?topicId=9648& msgbdName=Swissco
Swissco to file for interim judicial management as bank lenders pull the plug
SINGAPORE - Debt-saddled Swissco Holdings will file for interim judicial management over the next few days, it said on Monday.
The decision comes as its main lenders have rejected the company' s financial restructuring plan, the rig and vessel chartering group told The Straits Times by phone.
UOB is Swissco' s largest lender, followed by DBS. Swissco carries S$255 million of bank debt owed to seven banks.
Chief executive Tan Fuh Gih told The Straits Times: " Due to the current circumstances, we' re no longer able to operate as a going concern, and are prepared to file for interim judicial management."
Chairman Lim How Teck said the company is preparing its paperwork and will file over the next few days.
Swissco has a market value of about S$35.1 million. The shares last traded at 5.2 cents on Oct 10 before trading was suspended.
Swissco also owes bond holders S$100 million in principal that would have come due in 2018.
Mr Low noted that bond holders are likely to get very little in return when the company goes under judicial management, while shareholders can expect to get nothing.
|
|
Shareholders, need only to read the last sentence...
http://www.sharejunction.com/sharejunction/postMessage.htm?topicId=9648& msgbdName=Swissco
Swissco to file for interim judicial management as bank lenders pull the plug
SINGAPORE - Debt-saddled Swissco Holdings will file for interim judicial management over the next few days, it said on Monday.
The decision comes as its main lenders have rejected the company' s financial restructuring plan, the rig and vessel chartering group told The Straits Times by phone.
UOB is Swissco' s largest lender, followed by DBS. Swissco carries S$255 million of bank debt owed to seven banks.
Chief executive Tan Fuh Gih told The Straits Times: " Due to the current circumstances, we' re no longer able to operate as a going concern, and are prepared to file for interim judicial management."
Chairman Lim How Teck said the company is preparing its paperwork and will file over the next few days.
Swissco has a market value of about S$35.1 million. The shares last traded at 5.2 cents on Oct 10 before trading was suspended.
Swissco also owes bond holders S$100 million in principal that would have come due in 2018.
Mr Low noted that bond holders are likely to get very little in return when the company goes under judicial management, while shareholders can expect to get nothing.
U short this one also? Cfd? What happens to your cfd account if it continue to suspend eg. 3months?
Macqueen ( Date: 12-Oct-2016 23:22) Posted:
Wa ok tio trap
john_ric ( Date: 12-Oct-2016 23:18) Posted:
swissco dead!!
SINGAPORE (Oct 12): Troubled oil and gas services company Swissco announced it will default on its interest payment to noteholders on Oct 16 and will suspend trading with immediate effect.
|
|
|
|
Wa ok tio trap
john_ric ( Date: 12-Oct-2016 23:18) Posted:
swissco dead!!
SINGAPORE (Oct 12): Troubled oil and gas services company Swissco announced it will default on its interest payment to noteholders on Oct 16 and will suspend trading with immediate effect.
|
|
swissco dead!!
SINGAPORE (Oct 12): Troubled oil and gas services company Swissco announced it will default on its interest payment to noteholders on Oct 16 and will suspend trading with immediate effect.
Looks like this is the next to file for bankruptcy.
Eh.... Swissco current price is 0,063. How do you get 0.019 as target buy in price ah ? Did you mean to post this message for Vallianz ?
treetops ( Date: 28-Jul-2016 10:09) Posted:
Short term trade can still buy at 0.019. Should be able to closed above 0.022.
Buy on fear cos alot of them want to balance their holding price. So short term intra trade still can gain.
Cheer and good luck!
miumiu ( Date: 05-Apr-2016 21:01) Posted:
| Not sure if this is yay or nay leh... Any insights |
|
|
|
