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Nam Cheong files for scheme of arrangement, moratorium with High Court

NAM Cheong said after Monday trading close that it has filed last Friday, an application with Singapore's High Court to restructure its debts under the scheme of arrangement (SA).

Together with the SA application, the holding company has also sought a six-month moratorium on legal proceedings against it.

The company clarified, however, that the moratorium will not preclude notes trustee, DBS Trustee, from taking steps to enforce its rights to release monies from an escrow account in favour of two tranches of notes, the Series 3 S$200 million notes due 2019 and S$75 million Series 4 notes due 2018.

Nam Cheong also pointed out that a meeting with its scheme creditors may be convened within three months from the date of the court order.

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The application will be heard at a date to be fixed by Singapore's High Court at a pre-trial conference scheduled on Oct 12, 2017.

Nam Cheong's subsidiaries, Nam Cheong Dockyard and Nam Cheong International, have also filed an application in the High Court of Malaya to convene a meeting with their scheme creditors to approve their SAs.