Nam Cheong reviews options, considers restructuring
Janice Heng
MAINBOARD-LISTED Nam Cheong is reviewing its options as it suffers the impact of the global oil and gas downturn and Malaysia's extended Movement Control Order, the offshore support vessel builder said in a Singapore Exchange filing on Friday night.
In the face of these "recent severe adverse events ... which are expected to protract, the Group's current operating condition, financial position and business outlook have been adversely impacted significantly," said Nam Cheong.
The company is thus reviewing various options to realign its businesses, operations and balance sheet to preserve value for stakeholders.
It is holding discussions with principal lenders and may appoint advisors to help address significant debt maturities. Steps may include extension of the maturities, or restructuring of existing loans.
Nam Cheong is also reviewing its cash flow projections "in the face of the great business uncertainties, operational disruptions and costs containment measures".
It will be entering discussions with various parties regarding possible actions to contain operating costs and preserve working capital to fund its operations. It will also explore strategies to bolster its financial position while continuing cost rationalisation.
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No definitive agreements in relation to restructuring have been entered into as of the date of the announcement, said Nam Cheong, adding: "There can be no assurance or reasonable certainty that any discussions or any restructuring options will materialise or be successfully concluded."
If restructuring is not favourably completed in a timely manner, the company will be faced with a going-concern issue.
Further announcements will be made as and when there are material developments, said Nam Cheong, advising stakeholders and potential investors to exercise caution when trading in its shares.
Nam Cheong shares closed flat at 0.5 Singapore cent on Friday before the announcement.
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