Jaya in trouble

Singapore offshore vessel builder and operator Jaya Holdings says it is in the process rationalising its newbuilding program by delaying and cancelling newbuilding orders because of cash-flow problems. The shipbuilder is undergoing a restructuring program for its newbuilding program, which required $482.4m in capital as of the middle of last year. The company has three shipyards located in Singapore, Batam Island, Indonesia and Nantong, China and also outsources shipbuilding projects to third-party yards in China.

Three of the company’s main subsidiaries, Jaya Shipbuilding and Engineering, Java Marine Lines, and Airia Jaya Marine were granted a debt moratorium by the Singapore courts last week until the end of October, while the company’s debt restructuring plans are finalized. Jaya had been seeking to freeze repayments on debts totalling over $300m pending the restructuring.