Nam Cheong notes payment made from reserve, two others to be skipped

By Caroline Salls

Pittsburgh, Aug. 23 – Nam Cheong Ltd.’s board of directors said a coupon payment due July 23 on the company’s series 004 6˝% notes due 2018 was made on Aug. 1 from the series 004 interest service reserve account.

However, the company said in a news release that it will not make the coupon and principal payments due on Aug. 28 on its series 002 5% notes due 2017 and its series 003 5.05% notes due 2019.

Nam Cheong said the series 002 and series 003 notes are secured by account charges over reserve accounts held by trustee DBS Trustee Ltd., and each account contains two coupon payments of each of the notes series.

The company said it is working with its advisers and will provide an update on the restructuring of its debt in due course.

In addition, Nam Cheong said an informal steering committee comprised of nine noteholders has been formed to represent views received from the general body of noteholders and facilitate meetings with the company to discuss how the restructuring will impact the noteholders.

The company said it would hold discussion groups with the informal steering committee and the noteholders beginning this week.

Nam Cheong is a Kuala Lumpur-based offshore marine group that specializes in building offshore support vessels.

© 2015 Prospect News.
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