Swiber: bankers, investors weigh up fall-out

The company's liquidation filing reignites questions about the credit fundamentals of oil companies amid persistent weakness in oil prices.

The liquidation of Singapore-listed oil-and-gas explorer Swiber has put its debt holders at risk. Bankers and investors think most borrowers will remain unaffected by the news but they fear things could get tougher for energy companies.

Investors and local bankers said Swiber's bankruptcy in the city-state should have limited ripple effects on the regional dollar bond market.

The size of the company and the outstanding debt is also fairly manageable, bankers said. But the potential default of the company's four outstanding Singapore dollar bonds, and a Chinese renminbi-denominated note, underlines the level of distress within the oil industry. That could...

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