Seatrade Maritime is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Nam Cheong creditors approve restructuring

4a8253ec497e644c167e9c4eb0b333f6
Financially strapped Malaysian offshore vessel builder and owner Nam Cheong has survived to fight another day.

The Singapore-listed company said 97.05% of its creditors by number and 94.14% by value had voted in favour of a scheme of arrangement. The scheme approval of three-fourths of creditors.

The scheme now needs to be granted by court orders from the Singapore courts and the High Court of Malaya.

“We believe that the recovery of the oil prices over the past 12 months has paved the way for the eventual upcoming growth cycle of the offshore & marine industry that we have been waiting for,” said Leong Seng Keat, ceo of Nam Cheong.

“With the firm and time-tested support from the banks, noteholders and major shareholder affirmed through this exercise, I must say that we are more than ready to ride the next growth trajectory.”

Once the darling of stock market analysts Nam Cheong, like many other offshore marine companies, ran into trouble with the sharp drop in the oil price. In particular its build-for-stock business left it holding a large number of newbuildings with no buyers and no employment in its own fleet.