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Pacific Radiance to convene noteholders CSE next February
PACIFIC Radiance said after Monday's trading hours that it is looking to convene a consent solicitation exercise (CSE) for the restructuring of S$100 million medium term notes (MTNs) next February.
At its first informal meeting with holders of these notes held on Friday, Pacific Radiance acknowledged that its current debt level is unsustainable considering fleet utilisation and charter rates have remained depressed as a result of a prolonged sectoral downturn.
In the presentation to noteholders, the offshore and marine group added that it is calling for support from both its bank lenders and noteholders towards the restructuring of US$444 million bank borrowings and US$75 million Sing dollar notes.
A second informal noteholder meeting is now scheduled for mid-January 2018, with the CSE projected for the end of February 2018.
The company has set aside S$4.3 million in an escrow account that can be used to meet an MTN coupon due in February but the CSE has to be carried out to facilitate the release of the monies in the account, it said in the presentation.