Singapore Flyer placed under receivership over bank obligations

SINGAPORE — Five years after it was officially opened to much fanfare, the Singapore Flyer has been placed under receivership for failing to meet financial obligations to banks.

Ferrier Hodgson, which specialises in insolvency and corporate turnarounds, was appointed as receivers and managers over the charged assets of Singapore Flyer Pte Ltd, which owns the 165-metre-high wheel.

Touted as the world’s largest Giant Observation Wheel, the Singapore Flyer has had a troubled short history. Only 10 months after its opening, 173 guests were trapped for more than six hours due to an electrical malfunction. There were also boardroom and legal tussles which saw former Managing Director Peter Purcell removed from the company. Questions were also raised about its financial viability, given that there might not be many repeat visitors.

It has nevertheless reported healthy visitor numbers. Between 2009 and 2010, for instance, the number reportedly increased by 30 per cent.

Earlier this month, it told the media that it had experienced a 10-per-cent spike in the number of local and international bookings each year by introducing more exclusive packages, allowing visitors to dine and sip champagne during their rides.

Mr Tim Reid, one of the receivers and managers, said in a media statement yesterday that it is “business as usual” at the tourist attraction. “We are committed to working closely with business partners and tour operators to ensure smooth operations throughout the receivership,” he said.

Ferrier Hodgson would be calling for expressions of interest shortly. “We are confident that we will be able to identify investors with the vision to manage, diversify and enhance the Singapore Flyer, thereby securing its long-term future as a significant Singapore attraction,” said Mr Reid.

He stressed that there were “no financial irregularities that we are aware of”. “It’s just that commitments have not been made, and financial obligations to banks were not fulfilled.”

The Singapore Tourism Board said it has been informed of the development and it “reserves our rights as landlord and will be closely engaging the various parties involved to ensure the best possible outcome that enhances the tourism sector”.

It added: “We look forward to a smooth resolution with minimal disruption to the public and visitors.”

Singapore Flyer CEO Patsy Ong declined to comment and referred queries to the firm’s receivers.

Travel agencies painted a mixed picture on the Singapore Flyer’s popularity. Siam Express General Manager Alex Yip said the attraction has held “many events that are creative, such as lunches and dinners which are quite attractive”. “There are always enquiries ... It is quite popular,” he said.

However, CTC Travel Senior Vice-President (Marketing & Public Relations) Alicia Seah said the Singapore Flyer “always has to be” included as part of a package to get tourists to visit the attraction. She said: “The majority of Chinese (tourists) do not go for it because they do not like the idea of being cooped in a capsule for 30 to 45 minutes. It also has many competitors, such as the SkyPark and 1-Altitude (at Marina Bay Sands), and it pales in comparison to other attractions.”

When TODAY visited the Singapore Flyer yesterday afternoon, dozens of tourists were milling around the shops and eateries. Tenants said they were unaware of the news but many were concerned.

Mr Alok, Operations Manager at Bayview Tandoor restaurant, said business has dropped over the past year. Mr Joachim Tan, Branch Supervisor at Seafood Paradise Restaurant, said: “We have no drop in numbers, but ... customers are spending less now.”

They added that apart from walk-in customers, they sustain business through avenues such as holding events and corporate clients.