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Pacific Radiance to pursue schemes of arrangement

OFFSHORE marine operator Pacific Radiance is planning to pursue restructuring by way of schemes of arrangement to gain some breathing space from looming legal proceedings.

In a regulatory filing on Wednesday, the group said its wholly owned unit Pacific Crest Pte Ltd (PCPL), has on May 16 made applications to the Court under the Companies Act to seek interim protection against legal proceedings that will impede its ongoing discussions with the various stakeholders.

This application seeks, among other things, to fend off any appointment of a receiver or manager over any property or undertaking of PCPL except with the permission of the court, legal proceedings against PCPL, and enforcement of any security over any PCPL property.

Under the Companies Act, the moratorium takes effect automatically during the period commencing from the filing of the application and ending on the 30th day after the application is made or the date on which the application is decided by the Court (whichever is earlier). During this period, no order may be made for the winding-up of PCPL.

The Board said it believes that this will provide stability for the day-to-day operations of the group to continue with support of its customers and key trade suppliers and allow the group an opportunity and adequate time to pursue its proposed restructuring and the investment.

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This application to the court came on the heels of winding-up applications filed by Alliance Catering & Consultancy Pte Ltd (Alliance Catering), on May 14 against PCPL and CSI Offshore Pte Ltd, an indirect wholly-owned subsidiary of the group.

Alliance Catering is making statutory demands for the payment of a total sum of US$1.07 million and close to S$76,900 for services rendered by Alliance Catering to PCPL and CSIO.

"The winding-up applications were filed by Alliance Catering as settlement on mutually acceptable terms could not be reached," Pacific Radiance said. These applications are fixed to be heard in court on June 8.

"The group is in discussion with its legal adviser in respect to the winding-up applications to determine the best course of action and various options available to the group. Meanwhile, the winding-up application filed against PCPL will be subject to the automatic moratorium."

Pacific Radiance had in February began a consent solicitation exercise for its S$100 million 4.3 per cent medium-term notes due later this year on Aug 29.

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