Offshore support vessel owner Pacific Radiance is nearing a deal to sell debt and ships as it continues to restructure its operations.
The Singapore company said that major secured creditors have entered into a letter of agreement with another OSV owner to sell loan receivables.
Pacific Radiance is working towards a separate deal that would see this unnamed company also buy ships, which would then be managed by Pacific Radiance.
The Singapore owner said it remains committed to restructuring its remaining liabilities through bilateral agreements, schemes of arrangement and consent solicitation exercises. Pacific Radiance has an SGD 1bn ($742m) 4.30% notes issue due this year.
The company has not given details of how many ships or how much debt is involved.
In January, an unnamed global asset manager with $100bn under management emerged as a potential white knight for Pacific Radiance.
The mystery company showed a "keen interest in extending debt financing" to the Singapore operator, which had been struggling with weak offshore markets.
This came at a time when discussions with another potential investor reportedly fell through.
Pacific Radiance said talks had stalled due to "certain difficulties that have arisen in the course of the discussions in or around December 2019".
Joint venture move
At that point, Pacific Radiance was in the process of raising a further $180m through a share placement with equity investors to complete a merger with Dubai-based offshore player Allianz Marine.
Subsidiary Crest Offshore Marine and Allianz Marine set up a joint venture company in Singapore known as Pacific Allianz Holdings (PAH).
Allianz Marine’s fleet will come under PAH’s control when Pacific Radiance completes its fundraising and regulatory approvals have been obtained.
The combined company will have a fleet of 180 vessels with a strong footprint in the Middle East and South East Asia.
