Pacific Radiance seeks to restructure $519m in debt

Singapore-listed offshore vessel owner Pacific Radiance is seeking to restructure some $519m in debt.

In a presentation to an informal meeting of noteholders Pacific Radiance said it had $519m in debt, comprising $444m in bank debt and $75m in Medium Term Notes.

The company said debt restructuring was necessary because of the: “Prolonged downturn compared to previous cycles, utilisation and charter rates remains depressed, current debt level is unsustainable.”

Pacific Radiance's revenues have declined 72% between FY2014 and the first nine months of 2017.

The company has half of its fleet of 72 vessels in lay-up and reduced its crewing levels by 35%.

It said was in discussions with investors over a undisclosed potential investment amount into the company. However, this investment was dependent on restructuring of its bank and bond debts.

Should a restructuring not be reached Pacific Radiance warned that unsecured creditors would achieve 0% recovery, while noteholders would get an estimated recovery of just 4.3%.

A number of Singapore-listed offshore marine and shipping companies have encountered difficulties in restructuring exercises with noteholders, in particular now-defunct shipping trust Rickmers Maritime and offshore marine company Swissco Holdings.

Posted 19 December 2017

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Marcus Hand

Editor, Seatrade Maritime News