Noteholders back Pacific Radiance's debt revamp

OFFSHORE support vessel-focused Pacific Radiance on Friday won a majority vote from holders of S$100 million notes due in 2018 for in support of its proposed restructuring plan.

It said before trading close that noteholders present and voting at the consent solicitation exercise convened on Friday granted its proposal a vote in excess of a requisite 75 per cent majority.

Its disclosure gave no percentage breakdown on the value of the notes represented by the votes cast on Friday.

The restructuring proposal extended two options for holders of the S$100 million notes.  Noteholders got to choose between getting part of their notes held redeemed in cash and swapping the remaining into equity or exchanging the notes held with convertible bonds that can be converted to shares.

Winning the majority vote for this proposal paves the way for Pacific Radiance to pursue the restructuring of outstanding bank loans via a scheme of arrangement.

Pacific Radiance has said it would be seeking debt forgiveness from and tabling debt-to-equity swap for US$211 million of bank loans. It would repay US$100 million of loans with cash to be raised from the issuance of new equity.  Some US$121 million of loans will be retained.