Malaysian offshore shipbuilder Nam Cheong has moved forward in its efforts to restructure its struggling business which is mired in debts of around MYR 1.84m ($428.4m).
Nam Cheong has decided to temporarily cease repayment of its borrowings, made up of both bank loans and bonds and including a repayment of its Series 004 Notes due this week on July 23.
PricewaterhouseCoopers Advisory Services has been appointed as the company’s financial advisor to assist on suitable restructuring options.
Nam Cheong is also in ongoing discussions with bank lenders with a view to restructure its facilities as well as engaging all stakeholders, including note holders. The company announced in April that it was taking steps to review its options to restructure a few weeks after auditors cast doubt on its ability to survive.
Earlier in the year Splash was told that Nam Cheong had around 56 vessels scheduled for delivery this year, yet only a small percentage had been committed for sale.