A day after the liquidation plans, Swiber decided now to put itself under judicial management. This means that company is allowed to operate under a new assigned management team instead of putting an end to its operations by liquidating al its assets. This would help company to ‘buy some time’ instead of making a suicidal step which will end up in huge losses to the bankers, the bond holders and the shareholders. Perhaps, in the meantime, a white knight may come along to help rescue the company.
Taking the judicial management route is, of course, an intermediate step and does not absolve the company from its financial obligations. If the new management finds that the situation cannot be resolved, it can still proceed with the liquidation route. So, let’s hope that a solution can be found before the problem gets enlarged.
Brennen has been investing in the stock market for 26 years. He trains occasionally and is a managing partner for BP Wealth Learning Centre. He is also the author of the book – “Building Wealth Together Through Stocks” which is available in both soft and hardcopy.