Singapore OSV owner Pacific Radiance says it has commenced debt restructuring discussions with its bank lenders.
Pacific Radiance indicated in its second quarter results last month that a restructuring would be forthcoming, announcing it had appointed advisers to help review its overall capital structure.
The company and its advisers have now commenced discussions with its lenders, saying it will work towards a consensual restructuring of its borrowings.
Pacific Radiance posted a second quarter loss of $8.5m and said it had taken additional measures to rein in costs, include further right-sizing of its fleet and further reductions of overheads. It has also warm stacked several vessels, and expects to see cost savings from this in future results.
“We will continue to focus on growing revenue while exercising prudence in our cashflow management. We have worked closely with our lenders to assess our debt position and working capital requirements since the industry downturn began in late 2014,” said executive chairman Pang Yoke Min.
As of June 30, total bank loans and notes payable stood at $522.5m.