Nam Cheong halts repayments and initiates talks with lendersCompany News // July 20, 2017
Nam Cheong Ltd shipyard in Malaysia, which builds offshore support vessels, is reported to have temporarily stopped repayment of all borrowings and has started discussions with lenders in order to restructure its bank facilities.
In recent months the company said it was reviewing its options in order to restructure its businesses, operations and balance sheet.
"While the restructuring is ongoing, the company has decided to temporarily cease repayment on all of the company's borrowings," it said.
Nam Cheong confirmed it will not pay a coupon on one of its notes due on 23 July and has appointed PricewaterhouseCoopers Advisory Services to advise it.
In March 2017, Nam Cheong Limited said its auditors had cast doubt on its ability to continue as a going concern, with the group facing “major liquidity hurdles”.
The company said its auditors, BDO LLP, included an “emphasis of matter with respect to the material uncertainty” related to going concern in their report on financial statements for the group for the financial year ended 31 December 2016.