Tuesday, May 28, 2013

Singapore Flyer put in receivership

The Singapore Flyer, a observation wheel in Singapore, has been put in receivership. Situated on the southeast tip of the Marina Centre, the 150 m diameter wheel,  was officially opened to the public on 1 March 2008.

What is receivership? Receivership is a type of corporate bankruptcy in which a receiver is appointed by bankruptcy courts or creditors to run the company. According to The Routers, Ferrier Hodgson, a law firm specialised in insolvency and corporate turnarounds, was appointed as receivers and managers over the charged assets of Singapore Flyer Pte Ltd, the company which owns the ferris wheel.

"It said in a statement on Tuesday that "it is business as usual at Singapore Flyer" and it is working with business partners and tour operators to ensure smooth operations through the receivership.

Ferrier Hodgson also said it is confident it will be able to identify investors to manage and improve the Singapore Flyer. "We will be calling for expressions of interest shortly to commence the process."

Usually, the primary responsibility of the receiver is to recoup as much of the unpaid loans as possible.

According to The Straits Times, analysts and tour agents were not surprised that company that owns the Singapore Flyer has bankrupted:

Analysts noted that the Singapore Flyer was not attractive to locals and did not encourage repeat visitors while tour agents also told The Straits Times that the ticket prices were too expensive and some had stopped taking tourists there.

Mr M. Loganathan, a tour guide, said that he prefers to take tourists to view Singapore's scenery from buildings like the OUB building instead. "It's cheaper so we earn more. At these places, tourists can stay as long as they want and take as many pictures as they want," he said, adding that he suggests alternate locations to the Flyer to tourists the guides.

Singapore Flyer put in receivership
Singapore Flyer put in receivership

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