Swiber shocked the stock market on Thu by announcing that it had applied to wind up the company. This is unexpected because based on latest financial results for 1Q2016, Swiber is still generating a positive operating cashflow. Anyway, the latest on this episode is that Swiber has applied to withdraw the winding-up application and apply for judicial management instead. The issue in this episode is the high indebtedness of the company. However, the nature of the debts also matters. Swiber has both bank loans and bonds. Had its debts been solely bank loans, the outcome might have been different. To understand why, it is useful to look at DBS' announcement of the financial impact of Swiber's potential winding-up. DBS announced that its total exposure to Swiber, which comprises loans, bonds and off balance sheet items, is about SGD700M. The exposure is partially secured and it expects to recover half of ......