Pacific Radiance restructuring plan offers noteholders 40 cents on the dollar

Singapore offshore operator Pacific Radiance is asking noteholders to vote on a restructuring plan which will see them receive cash and shares to the tune of 40.3 cents for every dollar they had invested.
If the plan is approved at an upcoming EGM, Pacific Radiance will issue 3 shares for every S$1 held by noteholders, worth around 36 cents, as well as make two coupon payments worth a total of S$4.3m. The company says the plan will offer noteholders the chance of further recovery should the company’s shares increase in value as the offshore market improves.
If the plan isn’t approved, noteholders have the option to vote on a second plan which will see one coupon payment made and talks extended. Should the second plan get voted down then the company is likely to go into default.
Pacific Radiance has been undergoing restructuring talks since last September and is carrying debts of over $500m.
As part of its recovery plan 36 vessels will be laid up, crew headcount will be cut by 35%, and wages for senior management will be reduced.

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.
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