Annual group turnover: Over USD 350.0 million

Facility Arranged: USD 80 million

A Singapore based SPV (“Borrower” or “Buyer”) entered into a Rig Building Contract (RBC) with a leading Indian shipbuilding company (“Builder”) in 2010 for purchase of two Jack-up Mobile Drilling Rigs (the “Rigs”). The two Rigs were to be delivered in Sep-2013 and in Mar-2014. Payment was to be made in 5 milestones.

As per the milestone related payment, the Builder submitted Bank Guarantees (from top-tier Indian banks) before receiving any milestone payment. The Buyer financed the total value in the Debt:Equity ratio of 80:20 through a Bank led consortium debt facility (for 80% RBC amount).

The Bank Guarantees (“BG”) received by the Buyer for milestone payment were assigned to the lenders.

Meanwhile Builder faced certain challenges in completion of the contract viz. shortage of specialized technical staff and high-tech equipment (ship lift), working capital and capacity related constraints and missed the delivery timelines for both Rigs.

Buyer and Builder through mutual agreement proposed to amend the RBC for extending time for delivery of the Rigs until June-2016.

Buyer was seeking term loan to refinance the prepayment loan given by the Bank consortium.