Nam Cheong, a Singapore-listed offshore vessel owner, has applied for protection with Singapore’s High Court in order to complete restructuring efforts.
To remind, the company said in July that it would temporarily stop repayment on all of the company’s borrowing, while it looks at the debt restructuring options.
Nam Cheong said in an SGX listing that it filed an application with the High Court of the Republic of Singapore to protect the company and its assets for a period of six months from the date of the application or until further order.
According to the offshore vessel owner, the application, filed on October 6, is intended to preserve the assets of the company as well as to put in place an effective restructuring of the company’s debt.
“The applications, if granted, will enable the Nam Cheong Restructuring Group to take all available and necessary steps to carry out a successful restructuring which will be fair and equitable to all stakeholders of the Nam Cheong Restructuring Group,” the company said.
The application will be heard on a date to be set by the court at a pre-trial conference scheduled on October 12, 2017.
Parallel to this application, the company’s key subsidiaries, Nam Cheong Dockyard as well as Nam Cheong International Limited also made an application in the High Court of Malaysia to convene a meeting with their creditors to approve schemes of arrangement for each of the companies.
Also, the moratorium does not preclude notes trustee, DBS Trustee, from “taking any steps to enforce its rights to seek the release and payment of such monies held in the relevant interest service reserve accounts” in favor of holders of Series 003 and 004 notes valued at S$275 million ($202M).