Malaysian offshore shipbuilder Nam Cheong has been served a writ of summons by AmBank in the High Court of Malaysia claiming MYR70.4m ($16.4m).
The writ of summons targets Nam Cheong as guarantor and subsidiary Nam Cheong Dockyard as borrower under credit facilities provided by the bank.
In June, Singapore bank OCBC also issued the shipbuilder with a writ of summons and statement of claim for over $10m in the High Court of Labuan.
Nam Cheong later decided to temporarily cease repayment of its bank loans and bonds repayments, and appointed PricewaterhouseCoopers Advisory Services as its financial advisor to assist on suitable restructuring options.
Nam Cheong said it will seek legal advice on this latest claim while remaining committed to its restructuring, and is continuing to engage in discussions with principal lenders including AmBank and other key stakeholders.
In the past few month, cost cutting measures and deferring of deliveries at third-party yards have been used to help the company ride out poor market conditions.
