Offshore marine operator Pacific Radiance announced a voluntary suspension of trading in its shares before the market opened yesterday, saying it will continue to pursue completing its debt restructuring after note-holders voted down a plan.
At a meeting on Monday, the holders of $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 $5 held, or at 26.3 cents per share.
A second proposal to have 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 (S$662 million), said yesterday it requested a voluntary trading suspension "to protect the interest of each stakeholder group".
"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," it said in a letter to shareholders.
"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," it added.
Pacific Radiance last traded at 7.8 US cents last Thursday.