Singapore OSV owner Pacific Radiance has revealed the details of a restructuring plan that it hopes can revive its business.
The company, which applied for court protection from creditors last week, will issue $120m of new shares equalling 65% of its enlarged equity.
It will then repay $100m of bank loans, while lenders will write off another $100m.
The owner said the move will "put the group back on even keel, ensuring the business sustainability under the current distressed market and positioning it for the eventual recovery of the sector."
The remaining re-profiled loans of $120m will be repaid over three years from 1 January 2021 to 31 December 2023.
Half of the interest will also be deferred for three years.
The unsecured portion of $110m of the bank loans will be restructured together with the other unsecured liabilities, and banks will receive shares in exchange.
Other unsecured creditors will also be awarded stock.
A separate consent process is ongoing with noteholders, however, after they rejected the debt-swap plan for a bond due to mature later this year.
Holders of the SGD 100m ($75.7m) issue blocked a deal that would have seen them receive 19 shares for every SGD 5 of debt held.
A second resolution was also rejected. This called for the waiver of any potential events of default and covenants that may be breached so that monies in an escrow account could be used to make a coupon payment due in March 2018.
