Nam Cheong

[karlmarx]

If related parties fail to agree on the terms of restructuring, Judicial Manager will come in soon...

Who's next?

[CY09]

http://infopub.sgx.com/FileOpen/NCL-1Q20...eID=404212

In the first of my investing journey, I have seen such a high negative revenue in a FS, which is concided by a positive cost of sales which is higher than the revenue! It is telling me Nam Cheong have been building ships at a loss, and its reversal of revenue recognition is good news??

It also shows the extent of order cancellations happening in the o&g.
This is probably going to question how much inventories will nam cheong have, what are its value and how aggressive has Nam Cheng been recognizing revenue.

With Nam Cheong's latest Q2 results, I have the answer to my question of Nam Cheong's inventories value

Q2 Nam Cheong Results: http://infopub.sgx.com/FileOpen/Nam%20Ch...eID=467160

Essentially, Nam Cheong inventories are only worth 25% of their stated value. To make it worse, the company also took impairments on its JV an associates. This resulted in shareholders looking at a negative equity of RM 700 mil with a RM 2bil writedown. It is likely shareholders will get nothing. Bondholders too are unlikely to get much of their capital back in the restructuring. 

Really showing how bad the down cycle of O & G is and being a leveraged company in this predicament.

[cfa]

As good as bankrupt !

[CY09]

http://infopub.sgx.com/FileOpen/NCL%20-%...eID=469983

A slight loss is made with the sale of its office units at Suntec. Unfortunately a slight loss for the company, but a right step to liquidate assets for cash repayment.

Personally, i think lenders and noteholders are going to get about 50% of their par value in the end.

------

Updates as of 8 Sept 17,

In other news, Nam Cheong has submitted a restructuring proposal to note holders and banks offering a debt for equity swap. In fact Nam cheong has not offered a full recovery of value for note holders and banks in all 3 scenarios. The funny point is how Nam Cheong is trying to swap shares for debts at a price which is 100% higher than its share price before suspension; while shareholders may vote "Yes", I wonder how the debt holders will feel having to be invested with Nam cheong by buying 100% more than what Mr. Market values it to be.

While the offer sounds ridiculous, i guess bondholders and banks have no choice but to kick the can down the road. It is unlikely we will see a repeat of rickmers where debt holders voted for the company to be wound up instead

http://infopub.sgx.com/FileOpen/NCL%20Pr...eID=469991

[tonylim]

http://infopub.sgx.com/FileOpen/NCL%20-%...eID=469983

A slight loss is made with the sale of its office units at Suntec. Unfortunately a slight loss for the company, but a right step to liquidate assets for cash repayment.

Personally, i think lenders and noteholders are going to get about 50% of their par value in the end.

Selling at appr S$1000.00 PSF seemed like fire sale  ?

[CY09]

http://infopub.sgx.com/FileOpen/NCL%204Q...eID=491413

Nam Cheong did a "Noble" by making further impairments on its stated inventories in this quarter. The only difference between Nam Cheong and Noble is that Nam Cheong has a business which is cash flow accretive. Disposal of many of its properties have also been executed to reduce debts.

The company is also undertaking a 1 for 1 rights issue at 1.4 cents per share to repay debts. Even with the rights issue, the company will still be in negative equity. A painful investment journey for current shareholders.

[lonewolf]

Another one bites the dust?

The Board is unable to reasonably assess the Company's financial position and is unable to demonstrate to the Exchange and its shareholders that the Company is able to continue as a going concern.

Thus, for this reason, the Board is of the opinion that the trading in the Company's securities should be voluntarily suspended pursuant to Listing Rule 1302, and requests the SGX to suspend trading of the Company's securities.

SOURCE: Request for Suspension