Pacific Radiance gets a month's extension on court protection for its assets

Pacific Radiance was one in a string of smaller offshore and marine players that crumpled in the face of debt during the oil and gas downturn.
Pacific Radiance was one in a string of smaller offshore and marine players that crumpled in the face of debt during the oil and gas downturn.PHOTO: PACIFIC RADIANCE

SINGAPORE - Struggling offshore and marine group Pacific Radiance has been given an extension of moratoria on certain legal proceedings against the company, which were due to expire on Dec 11.

The board added in a bourse filing on Wednesday (Dec 5) that it intends to apply to the High Court for another extension at its next hearing, which will be held on the new expiry date of Jan 14, 2019.

The moratoria, which Pacific Radiance asked for and was granted in late July, offer interim protection from various legal processes against its property.

But the board noted on Wednesday that two vessels have since been deemed not integral to Pacific Radiance's planned restructuring - a change reflected in the court's order. It has reached an agreement with creditor Standard Chartered to sell the vessels, it added.

The group had said in July that moratoria would give it enough time to work on its restructuring plan.

Noteholders have since agreed, in a September vote, to redeem their notes in a cash-and-equity option - that is, $37,500 in cash and 2.104 million Pacific Radiance shares for every $250,000 of notes held, as well as warrants pegged at an exercise price of 2.8 cents.

Pacific Radiance was one in a string of smaller offshore and marine players that crumpled in the face of debt during the oil and gas downturn. Trading has been suspended since Feb 28.