Singapore observation wheel enters receivership

Singapore’s giant observation wheel, The Singapore Flyer, has entered into receivership just five years after it first opened.

The wheel, which at 165 metres is the tallest Ferris wheel in the world, was fraught with links to companies that came under accusations of embezzlement in 2010.

And since opening in 2008 the wheel has suffered from several major break-downs, including an incident in 2008 when a fire in the control room caused the wheel to stop moving, stranding 173 passengers for six hours.

Tim Reid, Theresa Ng and Tan Aik Kiat from accounting firm Ferrier Hodgson have been appointed as the receivers and managers of the company's charged assets.

They say it’s business as usual for the wheel as they identify investors to manage and enhance the Singapore Flyer.

The troubles are reminiscent of Melbourne’s giant Ferris wheel, the Southern Star, which opened two years behind schedule in 2008 and closed 40 days later and has not yet reopened.

The troubled $100 million attraction is under major repairs and has missed several completion deadlines while suffering from safety problems.

In 2011 the 120 metre wheel broke free from restraints and started spinning in the wind, injuring two workers.

Soon after there were fears of falling debris from the wheel, which is being built by ING Real Estate.

In 2012 former premier Ted Ballieu told the Herald Sun, "it looks like what it is, which is a large, expensive, half-completed project, which has been very troubled, and the sooner it's resolved I think the better for everybody."

Former Lord Mayor Robert Doyle labelled it an embarrassment.