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Nam Cheong defaults on S$90m 2017 notes, appoints PwC as restructuring adviser
NAM Cheong has decided to "temporarily cease" repayment on all its borrowings while it seeks to restructure.
The debt-ridden shipping company will not be making payment of the next coupon payment due on July 23, 2017 with respect to the S$90 million Series 004 Notes.
The Malaysian shipping company said on Thursday that it has appointed PricewaterhouseCoopers Advisory Services (PwC) as its financial adviser to advise and assist the group on suitable restructuring options.
Nam Cheong has started discussions with lenders on restructuring the group's bank facilities. On March 31, 2017, it had RM1.84 billion (S$586 million) debt outstanding in bank loans and bonds.
"In the event the restructuring is not favourably completed in a timely manner, the company and the group will be faced with a going concern issue," Nam Cheong warned.