OCBC Bank issues Writ of Summons to Nam Cheong unit over US$10 million owed

Nam Cheong International has received a  Writ of Summons and statement of claims by OCBC bank in a Malaysian court.
Nam Cheong International has received a Writ of Summons and statement of claims by OCBC bank in a Malaysian court.PHOTO: ST FILE

SINGAPORE - OCBC Bank has commenced legal action against a unit of offshore marine group Nam Cheong over US$10 million owed to the bank.

The firm and its subsidiary Nam Cheong International (NCIL) have on Monday (June 19) received a Writ of Summons and statement of claims by OCBC Bank in the High Court of Labuan in Malaysia, Nam Cheong said in a stock exchange filing on Tuesday (June 20).

OCBC Bank is claiming against its subsidiary as borrower under a credit facility granted by the bank, and against Nam Cheong as guarantor of the loan.

The amount allegedly being owed to OCBC Bank was about US$10 million as at April 30, 2017, including interest, late payment charges and costs.

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"The company and NCIL are currently reviewing the Writ of Summons and seeking legal advice on this matter," the firm noted in the statement.

It added that the firm remains committed to the restructuring exercise which it embarked on earlier this year to review options to restructure its businesses following the protracted downturn in the global oil and gas industry.

As part of the exercise, Nam Cheong is in talks with its principal lenders to address variouse obligations owed to the lenders.

Further announcements will be made if there are any material developments, the firm said.