Pacific Radiance on Friday said that together with its advisers, it has commenced discussion with its bank lenders to review the group's financial position and capital structure.
Shares in the company, which offers offshore vessels and support services, fell as much as 8.2 percent to S$0.078 on the Singapore Exchange.
The Group and the bank lenders intend to work towards a consensual restructuring of the company's borrowings, it said in a statement.
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 last month 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 44 percent of their so far this year, giving it a market value of S$56 million.