Court clearance

Singapore’s High Court has approved a debt repayment deal drawn up by offshore vessel and yard player Jaya Holdings.

The schemes cover Jaya and its two subsidiaries, Jaya Shipbuilding and Engineering and Java Marine Lines, and will come into force on 25 February

They involve full repayment of bank debt over five years with a two-year interest holiday.

From the third year, key operating units will start repaying the debt, starting with SGD 66m ($46m), which then rises to SGD 85m in the fourth year plus SGD 149m plus the balance by the end of the fifth year.

Jaya said its operations and activities “continue as normal with no break or cessation.”

In June 2009 Jaya ran into trouble after several of its lenders “expressed reluctance” to roll-over and/or extend existing credit facilities to the group.

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