Nam Cheong seeks court protection amid bid to restructure debts

Nam Cheong seeks court protection amid bid to restructure debts

One of the biggest names in Malaysian offshore, Nam Cheong, has revealed it has applied to Singapore’s High Court to restructure its debts under a scheme of arrangement.

Nam Cheong, a builder and operator of OSVs, which first announced plans to restructure in April this year, also announced on Monday it has requested a six-month moratorium on legal proceedings against it.

However, the moratorium will not preclude notes trustee, DBS Trustee, from taking steps to enforce its rights to release monies from an escrow account in favour of two tranches of notes worth a combined S$275m.

The application will be heard later this year at Singapore’s High Court.

Meanwhile, Nam Cheong’s subsidiaries, Nam Cheong Dockyard and Nam Cheong International, have also filed an application in the High Court of Malaysia to convene a meeting with their scheme creditors to approve their own schemes of arrangement.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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