Nam Cheong will not make coupon, principal payments on two notes in line with debt standstill

NAM Cheong said it will not be making coupon and principal payments due on Aug 28 on its S$90 million 5 per cent notes (Series 2 notes) as well as coupon payments due on Aug 26 on the S$200 million 5.05 per cent notes (Series 3 notes).

This, it said, was consistent with the firm's debt standstill and the announcement last month on the non payment of the coupon due on July 23 for the S$75 million 6.50 per cent notes (Series 4). The coupon payment for the Series 4 notes - the debt paper is due 2018 - was paid to noteholders on Aug 1 from the monies in the notes' interest service reserve account (ISRA), said Nam Cheong.

As for the Series 2 and 3 notes, the company said that they are secured by account charges over their respective ISRAs held by DBS Trustee Limited, as trustee in favour of the noteholders.

Each ISRA contains two coupon payments for the notes and Nam Cheong said that it is in communication with DBS Trustee in relation to the monies in these accounts.

"The company is working with its advisers and will provide an update with respect to the restructuring of its indebtedness in due course," it added.

In a separate announcement, the offshore support vessels builder and owner said that it has formed an informal steering committee comprising nine noteholders to represent views from noteholders.

The committee will facilitate meetings with the company to discuss the impact of its restructuring exercise on noteholders, said Nam Cheong, adding that Rajah & Tann Singapore LLP has been engaged to advise the committee.