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.