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Nam Cheong suspends trading

Building of a diesel electric platform supply vessel at Nam Cheong’s 12.6-hectare Miri shipyard located in Kuala Baram, Sarawak, Malaysia.

NAM Cheong has called for a trading suspension on Friday with immediate effect.

This comes after the mainboard-listed company said on Thursday that it has decided to "temporarily cease" repayment on all its borrowings while it seeks to undergo restructuring.

Nam Cheong said that it 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. It has appointed PricewaterhouseCoopers Advisory Services Pte Ltd as its financial adviser to advise and assist it on suitable restructuring options.

The Malaysian shipping company 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.

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Last month, Nam Cheong's shares tumbled to a five-year low of 1.6 Singapore cents after it emerged from a trading halt following news of a writ of summons issued on OCBC Bank's claims against the company and its subsidiary.

Nam Cheong last traded at S$0.02 on Thursday.