PACC Offshore Services: JV in default on around US$28 million loan facility

PACC Offshore Services Holdings, or POSH, said Thursday an event of default has occurred on a loan facility to POSH Terasea (PTPL), a 50-50 joint venture with Terasea.

The facility’s outstanding amount is around US$27.6 million as of Tuesday, with the loan secured solely by PTPL’s five anchor handling tugs, POSH said in a filing to SGX.

“The lender has declared that all of the relevant outstanding amounts (including accrued interest) under the loan to be payable,” POSH said.

While POSH added it couldn’t fully determine the financial impact on the group, the maximum financial impact would be an impairment of its interest in PTPL on its books and the amount due from PTPL.

As of end-June, POSH valued its PTPL stake at around US$27.6 million, and PTPL owed it around US$14.4 million on an unsecured basis, the filing said.

POSH and its joint ventures operated a combined fleet of 122 vessels, nine of which were operated by PTPL, the filing said. POSH said it didn’t expect the event of default to impact its operating cash flow.

Terasea is a joint venture between Ezion Holdings and Seabridge Marine, the filing said.

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