SINGAPORE - Offshore marine operator Pacific Radiance announced before market open on Wednesday morning a voluntary suspension of trading in its shares with immediate effect, saying it will continue to pursue completing its debt restructuring after noteholders voted down a plan. (See amendment note)
At a meeting on Monday, the holders of S$100 million 4.3 per cent medium-term notes voted against the plan to convert all their debt into fresh equity at 19 new shares for every S$5 held, or at 26.3 Singapore cents per share.
A second proposal for one coupon payment and the extension of talks was also voted down.
Pacific Radiance, which is carrying a debt pile of over US$500 million, said it on Wednesday it requested a voluntary trading suspension "to protect the interest of each stakeholder group." It also filed a letter to shareholders that said: "Though the proposed resolutions in the recent consent solicitation exercise were eventually not carried through, we remain focused on completing the restructuring and rightsizing the debt of the Group so that Pacific Radiance can continue to operate in a sustainable manner and stay competitive.
We have made significant headway in our recent discussions with our major creditors and potential investors on the terms of the restructuring. We will press ahead to engage the broader stakeholder groups on the restructuring." Pacific Radiance last traded at US$0.078 on Feb 22.
Correction note: An earlier version of the article stated that Pacific Radiance shares were in mandatory suspension. This is incorrect. The article has been updated to reflect this.