Murky waters await rig builders after Sete Brasil narrowly escapes bankruptcy

Sete’s investors will meet again in February.

Sete Brasil will not be placed in bankruptcy protection after all, according to a report by DBS. At a shareholder’s assembly held late last week, the plan take the cash-strapped rigbuilder into bankruptcy protection was voted down.

The plan was panned by major shareholders Petros, the Petrobras employee pension fund, which holds an 8% stake, and Santander, which holds a 6% stake. An 85% acceptance level was required for the plan to go through.

Acording to DBS, a new meeting has been set for mid-February this year, and the impact on Singapore’s two largest rigbuilders is yet to be ascertained.

“The impact on Singapore rigbuilders Keppel Corp and Sembcorp Marine depends on details of the restructuring plan. If stakeholders take over the uncompleted units (in the case of bankruptcy) and Petrobras keeps its charter contracts firm, losses will be minimal,” DBS said