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.