Pacific Radiance seeks court protection from creditors during restructuring

PACIFIC Radiance Ltd has applied for court protection against any attempts by creditors to enforce their claims while the company is in discussions with stakeholders on restructuring, the offshore marine services firm announced on Tuesday morning.

The application submitted on July 23 seeks a moratorium preventing any receiver or manager from being appointed over any of the company's properties or undertakings without permission from the Singapore High Court.

It also seeks orders stating that no legal proceedings may be commenced or continued against the company, and no legal process shall be commenced, continued or levied against any property of the company, including steps to enforce security, repossess goods or enforce rights of re-entry or forfeiture under any lease for any premises occupied by the company.

This moratorium will be in effect from the date that the application is granted until Dec 11, 2018 or until further order, Pacific Radiance said in its statement.

In accordance with section 211B(8) of the Companies Act, an automatic moratorium takes effect with the filing of this application, and no order may be made for the winding up of the company during the period starting with the application filing and ending either 30 days after the application is made or the date when the court decides on the application, whichever is earlier.

If granted, the automatic moratorium as well as the moratorium requested in the application will give the group an opportunity and adequate time to continue finalising the restructuring and investment, Pacific Radiance said.

Trading of the company's shares have been voluntarily suspended on the Singapore Exchange since Feb 28, 2018.