Nam Cheong says worst is now over with expected O&M recovery and restructuring initiatives

SINGAPORE (Sept 11): Malaysia-based offshore support vessel (OSV) builder Nam Cheong expects to implement its sanctioned schemes of arrangement by this year, which would signal the “crossing of a key obstacle” in its ongoing restructuring exercise to strengthen its financial position as well as enable the group to operate as a going concern.

The group is also anticipating the gradual recovery of the O&M sector, as vessel selling prices and charter rates are expected to gain momentum from the current downturn over the next few years.

In a note to shareholders issued this afternoon, Nam Cheong says it projects its proposed rights issue of 2.1 billion shares at 1.4 cents per share to increase the company’s shareholder fund to RM88 million ($29.2 million), if fully subscribed.

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