Nam Cheong's revised swap still 'contentious'

Singapore

NAM Cheong's sweetened equity swap for partial settlement for its US$336 million unsecured debt is likely to remain contentious, one analyst said while noting that there is still room for improvement.

The assumed cash flows underpinning Nam Cheong's debt restructuring proposal have also come under the spotlight with one noteholder fleshing out challenges to the company's offshore support vessel (OSV)-focused business even after a successful debt restructuring.

On Tuesday, Nam Cheong publicly announced an improved debt-to-equity swap for 35 per cent of the US$336 million unsecured debt and medium term notes, which are deemed non-sustainable.

The conversion ratio was revised to US$1 debt to 30 shares, equating to 4.5 Singapore cents per share. This compares with the previous ratio of US$1 to 17 shares, or an …