Sweden's Svithoid Tankers at risk of folding

10 October 2008 11:59  [Source: ICIS news]

LONDON (ICIS news)--Sweden’s Svithoid Tankers is at risk of folding if the company is not able to secure financing to continue operations, the Stockholm-based shipowner said on Friday.

“As a consequence of Svithoid Tankers' immediate liquidity shortage, the company presently lacks the ability to perform under its undertakings,” the company said in a statement.

It added that it was involved in negotiations with its creditors, bond holders, convertible bond holders and shareholders to secure the company’s financing and the continued operations of the business.

“There is a risk that Svithoid Tankers will be unsuccessful in finding such a solution,” said Svithoid. “The outcome of such discussions may also result in the loss of value of shares currently held by the company’s shareholders.” 

No-one from the company was immediately available for further comment on Friday.

Svithoid owns and operates product and chemical tankers up to 5,000 deadweight tons (dwt). It has a fleet of 11 vessels, with another five vessels currently under construction. 

The company’s shares slumped 45.95% on the Stockholm stock exchange to trade at Swedish kronor (Skr) 0.40 at 10:03 GMT.

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By: Hilde Ovrebekk
+44 20 8652 3214

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