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Pacific Radiance suspends shares after bondholders reject plan

Wed 28 Feb 2018 by David Foxwell

Pacific Radiance suspends shares after bondholders reject plan
Pang Yoke Min: “we have made significant headway and will press ahead to engage the broader stakeholder groups”

The board of directors of Pacific Radiance Ltd, together with its subsidiaries, has requested a voluntary suspension of trading its shares and related securities with immediate effect.

Pacific Radiance is facing uncertainty after two extraordinary resolutions on its proposed restructuring plan were rejected by bondholders.

In a statement earlier this week, the company said “Notice is hereby given by the issuer pursuant to Condition 10 of the Notes that Extraordinary Resolution No 1 tabled at the meeting on 26 February 2018 has not been passed and Extraordinary Resolution No 2 tabled at the meeting on 26 February 2018 has not been passed.”

However, the company said there had been “significant progress” in its discussions with major creditors and potential investors on the terms of restructuring the group’s borrowings. 

“As the company presses on to engage the broader stakeholder groups on the restructuring, the board has recommended that trading of the shares and related securities of the company be suspended to protect the interest of each stakeholder group as well as to ensure that no person is trading in the shares and related securities of the company without sufficient information that is required to enable such a person to make an informed decision,” Pacific Radiance said in a statement.

The company said it wanted to emphasise that this is a voluntary suspension pursuant to Rule 1302 of the Singapore Exchange Securities Trading Limited Listing Manual. 

The company will seek to lift the trading suspension as soon as it is appropriate to do so without compromising the interests of all stakeholder groups.

In a letter to shareholders, the company’s executive chairman Pang Yoke Min said the company had commenced discussions with major creditors in mid-2017.

“As ongoing discussions are likely to require more time to reach a definite conclusion, the Singapore Exchange has granted the company an extension of time to announce its financial results for the full year ended 31 December 2017 and the first quarter ended 31 March 2018,” he said.

“This will allow the company to release its financial results after the main terms of the restructuring are finalised and their financial effects are considered by the auditors. This will also enable the market to better assess the financial impact of the restructuring on the group.

“We have held several informal meetings to engage our noteholders in relation to the S$100M (US$76M) 4.3% notes due 2018 issued by the company. Though the proposed resolutions in the recent consent solicitation exercise were eventually not carried through, we remain focused on completing the restructuring and rightsizing the debt of the group so that Pacific Radiance can continue to operate in a sustainable manner and stay competitive.”

 

“We have made significant headway in our recent discussions with our major creditors and potential investors on the terms of the restructuring. We will press ahead to engage the broader stakeholder groups on the restructuring,” he said.

“We believe the industry is at its inflection point and our business model is viable, supported by a young fleet and our highly experienced management team with a proven track record. We are confident Pacific Radiance will emerge an even stronger entity post-restructuring,” Mr Pang concluded.

 

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