Malaysian OSV shipbuilder Nam Cheong has reached a deal to sell its office unit located on Paya Lebar Road in Singapore for S$4.5m ($3.35m) as it desperately works to reduce its debt levels.
Nam Cheong currently has around $424m in debts owed to banks and bondholders, and is working hard to persuade creditors to help the company swap debt for equity.
Earlier in the month, the company announced the sale of its Suntec office space in Singapore for a little over S$25m ($18.7m) and Tiong Su Kouk, the company’s chairman and largest shareholder, has also agreed to stump up RM50m ($11.93m) in cash to pay back some debts.
Completion of the latest property disposal is scheduled to take place within twelve weeks and proceeds will be applied towards settlement of a credit facility granted by DBS Bank.
Nam Cheong is currently using the Paya Lebar property as its principal place of business and intends to negotiate a lease back with the new owner.
