Pacific Radiance said it had commenced discussions with potential investors to raise fresh funds as part of the restructuring and has received expressions of interests from them.
Shares in the company, which offers offshore vessels and support services, rose as much as 5 percent to S$0.09 on the Singapore Exchange.
The company said it has reached an informal arrangement with major lenders to temporarily suspend its certain debt obligations to allow the group time to implement the possible fresh funding as part of the restructuring, it said in a regulatory filing on Monday.
Pacific Radiance intends to convene an informal meeting in the next several weeks to commence restructuring of S$100 million medium-term notes.
Pacific Radiance second-quarter net loss after tax narrowed to US$8.5 million but its bottom line continued to take a beating from weaker performance of its offshore support services business.
Executive Chairman Pang Yoke Min said in August that though there has been a pick-up in activity in the offshore market, operating conditions are expected to remain challenging over the next 12 months.
The company said it has continued in its efforts to curb costs and step up marketing.
Shares in Pacific Radiance have lost nearly 42 percent of their so far this year, giving it a market value of S$61 million.