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Pacific Radiance assessing recoverability of amounts due from joint ventures: Board
EMBATTLED offshore marine-services provider Pacific Radiance has impaired costs from its joint-venture companies because of an industry downturn, the board said on Friday.
The Singapore Exchange had asked about US$7.02 million in impairments on amounts due from the two units, booked in the six months to June 30.
The sum, which was up from US$522,000 in the year-ago period, came mainly from vessel and charter-related expenses and loans meant for vessel acquisition, the board replied. It noted that its joint ventures Duta Maritime Ventures Sdn Bhd and Navigatis Radiance Pte Ltd were unable to repay what they owed.
Pacific Radiance management has thus moved to impair part of the amounts due, after assessing their recoverability as at end-June.
On the overall US$47.5 million due from joint-venture companies, the board said that these amounts are due or repayable on demand. Other related companies include PT Jawa Tirtamarin, with US$29.8 million due, and Al Hail Marine Services LLC, with US$2.48 million due, according to the latest disclosure.
Pacific Radiance "has made the necessary provision" for these amounts due, said the board. It added: "The management will continue to monitor and assess the recoverability of the amounts outstanding regularly."
Trading in Pacific Radiance shares were suspended in February 2018.