Singapore-based offshore vessel operator Pacific Radiance has struck a conditional deal with its secured lenders and ENAV Radiance, an affiliate of Mexico’s ENAV Offshore, for the sale of its entire fleet.
The deal will see Pacific Radiance transfer its 33 vessels and accompanying income and revenue streams to ENAV. In return, ENAV will pay off the debt of around $200m currently owed by Pacific Radiance. According to VesselsValue data, the company currently owns 32 ships and has one AHTS on order at the Nantong Tongshun shipyard in China.
Following the transaction, Pacific Radiance said it should pivot into an asset-light ship manager and continue to offer its expertise and services in the offshore marine industry in the near term, with a view to developing other revenue streams in the medium term.
“The group believes that the ship management business is expected to stay resilient in the current challenging environment as more shipowners look to scale down their operations, contain their costs and outsource all or certain parts of their operations to professional ship managers,” Pacific Radiance said.
As part of the agreement, ENAV will appoint Pacific Radiance as ship managers for the majority of the acquired vessels via ship management contracts. The deal is subject to, among other things, shareholders’ approval and no objection from the Singapore Exchange Regulation.