Nam Cheong completes debt restructuring

Nam Cheong completes debt restructuring

Malaysian offshore shipbuilder Nam Cheong has completed its debt restructuring exercise, implementing the proposed schemes of arrangement.

The restructuring of the group’s debt with trade creditors resulted in the waiver of debts amounting to RM557.5m ($134.7m).

Nam Cheong has also raised S$22m ($16.1m) from a rights issue, which will mostly be used for working capital, but also for payments under the cash out option to eligible creditors under the terms of the schemes of arrangement.

Leong Seng Keat, CEO of Nam Cheong, commented: “The conclusion of the debt restructuring exercise represents a major milestone for Nam Cheong, which together with the rights issue, has enabled us to significantly pare down our debt and improve our net tangible asset by over RM500 million. We are grateful for the strong support we have received from our shareholders and moving forward, we will commit on delivering results and enhancing value for our shareholders.”

Nam Cheong resumed trading on the Singapore Exchange (SGX) last month, having managed to post a net profit after tax of RM559.6m ($135.2m) for the first half of year.

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.

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