Pacific Radiance granted moratorium on creditors' actions

PACIFIC Radiance has been granted a moratorium on legal actions taken by its creditors, the offshore marine services company announced after the market closed on Wednesday.

Its application, made on Jul 24, was to protect Pacific Radiance against any attempts by its creditors to enforce their claims while the company is in discussions with stakeholders on restructuring.

In granting the moratorium on Wednesday, the court further ordered that the moratorium shall not preclude DBS Trustee Limited - as trustee of the S$100,000,000 4.30 per cent notes due 2018 comprised in Series 001 issued by the company pursuant to its debt issuance programme established by the company on Aug 29, 2014 - from enforcing its rights under the Series 001 Account Charge dated Nov 30, 2015, including but not limited to withdrawing all amounts in the Series 001 Interest Service Reserve Account for partial payment of the final interest payment due on the Series 001 Notes on Aug 29, 2018.

The court also ordered Pacific Radiance to submit a report on the valuation of its significant assets, in support of its intended application for a scheme of arrangement, as well as to submit information on any acquisition, disposal or grant of security no later than 14 days afterwards.

When Pacific Radiance sends documents on its proposed restructuring scheme to creditors, it must also provide forecasts of profitability and cash flow from operations on a consolidated basis.

Trading of Pacific Radiance shares has been voluntarily suspended since Feb 28.

Amendment note: An earlier version of this story incorrectly stated that in granting the moratorium on Wednesday, the court further ordered that the moratorium does not preclude DBS Trustee Limited from enforcing its rights regarding S$100 million 4.30 per cent notes due 2018, for which it is trustee. It should have stated that the moratorium shall not preclude DBS Trustee Limited - as trustee of the S$100,000,000 4.30 per cent notes due 2018 comprised in Series 001 issued by the company pursuant to its debt issuance programme established by the company on Aug 29, 2014 - from enforcing its rights under the Series 001 Account Charge dated Nov 30, 2015, including but not limited to withdrawing all amounts in the Series 001 Interest Service Reserve Account for partial payment of the final interest payment due on the Series 001 Notes on Aug 29, 2018. The article above has been revised to reflect this.