AmBank takes legal action against Nam Cheong over $16M debt

Nam Cheong, a cash strapped Malaysian offshore vessel builder, has been hit with a claim by AmBank.

The OSV player on August 9, 2017 received a writ of summons and statement of claim dated August 7, 2017 filed by AmBank in the High Court of Malaya at Kuala Lumpur, Malaysia.

AmBank is seeking a loan repayment from Nam Cheong in the amount of of 70,4 million Malaysian Ringgit ($16.4 million) as at July 31, 2017, together with interest and costs on a solicitor-client basis, owed to AmBank by Nam Cheong Dockyard Sdn Bhd, a subsidiary of Nam Cheong.

Nam Cheong said it was reviewing the Writ of Summons and seeking legal advice on this matter.

Kuala-Lumpur based Nam Cheong, hurt by an oversupply in the OSV market, coupled by low oil prices, has recently started discussions with lenders over its debt restructuring. The company in July said it would said it would temporarily stop repayment on all of the company’s borrowing, while it looks at the debt restructuring options.

“In the meanwhile, the Group remains committed to the Restructuring and will continue to engage in discussions with its principal lenders (including AmBank) and other key stakeholders in relation to the Restructuring. However, there can be no assurance or reasonable certainty that any discussions or any Restructuring options will materialise or be successfully concluded,” Nam Cheong said on Thursday.

The company, building vessels to stock on a speculative basis, has appointed PricewaterhouseCoopers Advisory Services Pte. Ltd. as its financial advisor to advise and assist the Group, as appropriate, on suitable restructuring options for the group.

Offshore Energy Today Staff