Nam Cheong's creditors to withhold proceedings against its unit
MALAYSIAN offshore support vessel builder Nam Cheong on Thursday said that following an application by its wholly owned subsidiary, Nam Cheong Dockyard (NCD) to the Corporate Debt Restructuring Committee of Malaysia (CDRC), NCD's financial institution creditors are expected to withhold from any proceedings against NCD and its subsidiaries.
This is part of an informal standstill that will last for an initial six-month period, said the company in a regulatory update.
Meanwhile, NCD is expected to submit a proposal for a restructuring of its debts within 60 days from the date of CDRC's admission, after which CDRC will call for a meeting with NCD's creditors.
The company is hopeful of being able to get back to the term loan creditors and all other creditors in the near future with some indication of its plans which must ensure underlying viability and the generation of sufficient earnings before interest, taxes, depreciation, and amortisation (Ebitda) to meet its obligations, said Nam Cheong.
However, the group has yet to enter any definitive agreement in relation to the restructuring. In the event that restructuring is not completed in a timely manner, the company will be faced with a going concern issue, said Nam Cheong.
Nam Cheong has voluntarily suspended trading of its shares since April 2018.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
IBM plots US$730 million expansion of Canadian semiconductor site
Seatrium unit to fully redeem S$500 million worth of floating-rate bonds early
Yeo Guat Kwang, John Chen retiring from corporate boards
US: Wall St opens higher
Air China orders homegrown C919s in challenge to jet duopoly
HCA beats first-quarter profit estimates on higher patient admissions