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Pacific Radiance updates investment, debt-restructuring efforts

DEBT-RIDDEN offshore and marine group Pacific Radiance said on Thursday that despite firm commitments from certain investors on their portion of a US$85 million equity injection scheme announced in September, others have reduced either in part or in full their previously indicated investments.

It added that it continues to, through its advisers, reach out to other potential investors to fulfil these investment requirements.

Pacific Radiance had, in June, entered into a non-binding term sheet with unnamed “potential anchor investors” for an equity injection of up to US$85 million, and these investors would be issued with new shares in the company through a private placement.

It said then that it also intends to raise a further US$35 million through another private placement and/or rights issue, which would bring the total investment amount to some US$120 million.

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Pacific Radiance also said on Thursday that it is continuing to explore alternatives for its debt-restructuring efforts and has, this week, executed a binding term sheet with unnamed parties “who control a vessel owning and logistics services provider” that it calls “promoters”.

The term sheet proposes that Pacific Radiance will acquire an unnamed target company, into which the promoters will inject a business and assets - valued at some US$180 million - that they currently own. Pacific Radiance will pay for this investment through the issue and allotment of shares.