Singapore’s Pacific Radiance to complete restructuring under scheme

By Caroline Salls

Pittsburgh, May 16 – Pacific Radiance Ltd.’s board of directors announced Wednesday that the group intends to complete its restructuring by way of a scheme of arrangement to be proposed under the Companies Act.

As previously reported, the restructuring of the group’s borrowings and debt includes an equity infusion from anchor investors.

The company said the decision to complete the restructuring under scheme proceedings was made in light of development milestones reached between the group and its stakeholder groups, including its major lenders and anchor investors.

In order to preserve the proposed restructuring and investment, Pacific Radiance said wholly owned subsidiary Pacific Crest Pte. Ltd. (PCPL) sought interim protection against legal proceedings under the Companies Act on Wednesday “that will regress the group’s ongoing discussions with the various stakeholders.”

Specifically, PCPL asked the court to rule that no appointment may be made of a receiver or manager over any property or undertaking of PCPL and, except with court approval, no legal proceedings may be filed or continued against PCPL, no legal process against any property of PCPL may be filed or continued, no efforts may be made to enforce any security over any property of PCPL or to repossess any goods held by PCPL under any leasing agreement, hire-purchase agreement or retention-of-title agreement, and no right of re-entry or forfeiture under any lease for any premises occupied by PCPL may be enforced.

The moratorium period requested in the application is six months.

The board said it believes that the moratorium will provide stability for the day-to-day operations of the group to continue with support of its customers and key trade suppliers and give the group an opportunity and adequate time to move forward with the restructuring and the investment.

In addition, the board said Alliance Catering & Consultancy Pte. Ltd. filed winding-up applications with the Singapore High Court on May 14 against PCPL and CSI Offshore Pte. Ltd. (CSIO) in connection with statutory demand made by Alliance Catering for the payment of $1.07 million and $76,899 for services rendered by Alliance Catering to PCPL and CSIO.

The winding-up applications are scheduled to be heard on June 8, and the group is in discussion with its legal adviser in connection with the winding-up agreement to determine the best course of action and various options available to the group.

Meanwhile, the winding up application filed against PCPL will be subject to the automatic moratorium.

According to the release, trading in securities on the SGX-ST was voluntarily suspended by the company on Feb. 28.

Pacific Radiance owns and operates offshore vessels and provides subsea services, shipyard services, marine equipment and project logistics to the oil and gas industry. The company is based in Singapore.

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