21 November 2017
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High Court grants Nam Cheong permission for debt restructuring, extends moratorium

Business Times
31 Oct 2017
Tan Hwee Hwee

The Singapore High Court has extended a six-month moratorium on certain legal proceedings against Nam Cheong after granting the listed holding company the greenlight to proceed with debt restructuring under a scheme of arrangement (SA).

Nam Cheong said after Monday trading close that its SA was granted by the court on Oct 27.

The court also issued several orders pertaining to the six-month moratorium, including court orders against the appointment of a receiver or manager over any property or undertaking of the company.

The moratorium does not preclude DBS Trustee from taking any steps to enforce its rights to seek the release of monies held in interest service reserve accounts for the purpose of repaying holders of two series of notes totalling S$275 million.

Nam Cheong said that it can now call a meeting with its creditors within three months from last Friday to approve its SA. It has tabled a proposal before its noteholders in September before filing its SA with the High Court. The Business Times understands that certain noteholders, including both institutional and retail investors, have sought improvement on the conversion ratio proposed for swapping debts and outstanding notes to equity.

Nam Cheong has yet to publicly release any updates to its proposal floated in the September informal meeting with its noteholders.

Nam Cheong's subsidiaries, Nam Cheong Dockyard and Nam Cheong International have also filed an application in the High Court of Malaya to convene a meeting with their scheme creditors to approve their SAs.

Source: Business Times © Singapore Press Holdings Ltd. Permission required for reproduction.