Malaysia’s Nam Cheong concludes restructuring exercise through scheme

By Caroline Salls

Pittsburgh, Sept. 28 – Nam Cheong Ltd. announced Friday that it has concluded a debt restructuring exercise through the implementation of a scheme of arrangement for the company and its Nam Cheong Dockyard Sdn Bhd and Nam Cheong International Ltd. subsidiaries.

According to a company news release, Nam Cheong’s rights shares and non-sustainable debt shares were listed on the Main Board of the Singapore Exchange Securities Trading Ltd. on Friday and a cash-out option has been paid to eligible scheme creditors.

As of the close of the rights issue on Sept. 20, the company said valid acceptances and excess applications were received for a total of 1,573,224,089 rights shares, representing 75.04% of the shares available for subscription.

Nam Cheong said these results include 1,180,949,861 shares applied for by major shareholder Tan Sri Datuk Tiong Su Kouk, who previously agreed to deposit RM50 million for the rights issue.

The company said the rights issue has raised roughly S$22 million in proceeds, with S$3.2 million of those being used to meet cash-out option obligations. The remaining proceeds will be used mainly for working capital and operations of the group.

“To us, this represents a testament of the confidence that investors have in our management team and Nam Cheong’s future prospects,” executive chairman Tan Sri Datuk Tiong Su Kouk said in the release.

The group was represented in the debt restructuring exercise by financial advisers PricewaterhouseCoppers (Singapore and Malaysia) and legal advisers Drew & Napier (Singapore) and Skrine (Malaysia).

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

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