Swissco Sells Vessels to Allianz Middle East

Singapore’s Swissco Holdings, currently under judicial management, announced that it is disposing of a substantial part of its offshore support vessels division, which is expected to help reduce the group's liabilities.

UAE's Allianz Middle East Ship Management has signed a deal to buy most of the OSV fleet of Swissco, said a stock exchange annoucement from the restructuring vessel-owner.

"The Vessels are being sold on an “as-iswhere-is” basis. Only 3 of the 25 Vessels proposed to be disposed of are on charter. The remainder of the Vessels are not under charter and are minimally utilised or unutilised by the Group," said the statement.

Additionally, 15 of the 25 Vessels are currently mortgaged in favour of financial institutions to secure the obligations of certain Vendors under various loan and/or credit facilities extended by such institutions. The proceeds from the Proposed Disposals will be used in part to reduce the Group’s liabilities to such institutions.

"The Purchaser is a company incorporated in Saint Vincent and the Grenadines, and is an affiliate of Allianz Middle East Ship Management L.L.C., a company incorporated in the United Arab Emirates," it said.

Allianz Middle East Ship Management L.L.C. is a marine contractor in the business of providing marine vessels, offshore logistics and other petroleum services to the Oil & Gas industry and offshore construction industry.  

The aggregate consideration for the share disposal and the sale vessels is US$20,500,000, assuming the put option is not exercised in respect of the additional vessels, said the annoucement.