Pacific Radiance has applied for court protection against any attempts by its creditors to enforce their claims while the company is in discussions with stakeholders on restructuring, the offshore marine services firm announced yesterday morning.
The application submitted on Monday seeks a moratorium preventing any receiver or manager from being appointed over any of the company's properties or undertakings without permission from the High Court.
It also seeks orders stating that no legal proceedings may be commenced or continued against the company, and no legal process shall be commenced, continued or levied against any property of the company, including steps to enforce security, repossess goods or enforce rights of re-entry or forfeiture under any lease for any premises occupied by the company.
This moratorium will be in effect from the date that the application is granted until Dec 11, or until further order, Pacific Radiance said in its statement.
In accordance with Section 211B(8) of the Companies Act, an automatic moratorium takes effect with the filing of this application, and no order may be made for the winding up of the company during the period starting with the application filing and ending either 30 days after the application is made, or the date when the court decides on the application, whichever is earlier.
Trading of the company's shares has been voluntarily suspended since Feb 28.