The major shareholder of ailing shipbuilder Nam Cheong has agreed to pay RM50 million (S$16 million) in cash to pare some debts, in a final bid to persuade lenders to help the firm replace debt with equity and avoid liquidation.
Malaysian tycoon Tiong Su Kouk – Nam Cheong’s executive chairman – has agreed to inject the sum into the group via a rights issue as part of a financial restructuring plan under a court-supervised scheme of arrangement.
Amid a lifeless market for offshore supply vessels, Nam Cheong has racked up US$424 million (S$571 million) in debts owed to banks and bond holders, according to latest figures released last night.
Of this, US$88 million is secured and can be paid with asset sales. That leaves US$336 m…
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