Loss-making Pacific Radiance announced in a brief statement on Friday that the discussions will review the group’s financial position and capital structure. In the first half of 2017, the OSV company made a loss of $23.74m.
“The group and the bank lenders intend to work towards a consensual restructuring of the group’s borrowings,” Singapore-listed Pacific Radiance stated.
The company mentioned in its second quarter results last month that it has been working closely with its major lenders to assess its debt position since the onset of the offshore industry downturn.
It also indicated that a restructuring is on the table as it has appointed advisors to assist in reviewing the overall capital structure and developing a feasible restructuring plan.
The industry downturn was a result of a severe oversupply of OSVs, a situation that significantly worsened when crude oil prices softened, causing panick among operators as utilisation and charter rates plummeted.
While Pacific Radiance noted that there has been a pick-up in activity, operating conditions are expected to remain challenging over the next 12 months.
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