Swissco Holdings is negotiating the sale of four co-owned rigs to its partner Ezion Holdings.
The Singapore-listed company said confidential discussions are ongoing but the terms of the deal have not been finalized yet.
Ezion is reportedly closing on an agreement to take over four rigs owned by joint ventures (JVs) between the two parties for $16m, the Business Times reported.
But Swissco clarified it expects to receive less cash if the two companies put pen to paper.
Ezion went after Swissco and its subsidiary Scott and English Energy for over $522,000 in unpaid fees late last year.
Swissco has been struggling over the past few months and was unable to repay notes worth SGD 100m ($71.9m) late last November.
Some of its rigs were facing arrest by the Republic of Equatorial Guinea while its restructuring plan was rejected by bondholders.
The company’s interim judicial managers said the hearing of its applications will take place on 24 March.
