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Pacific International Lines (PIL) is seeking protection from the Singapore High Court from winding-up or enforcement orders as it tries to get its noteholders on board with a comprehensive restructuring plan.<\/p>\n
Under the plan, Singapore’s container shipping major is vying for fresh financing from Heliconia Capital Management Pte, an investment firm owned by Temasek Holdings, and a re-profiling of the company\u2019s debts by way of a scheme of arrangement.<\/p>\n
The filing with the court is being saught ahead of a meeting between PIL and some of its creditors on the proposed scheme of arrangement, including noteholders of the S$60 million fixed rate bonds due 2020 issued by the company. <\/p>\n
The company started looking for investors having been faced with considerable financial strain due to the impact of the COVID-19 and market volatility including high bunker prices and oversupply of capacity.<\/p>\n
The company has been on a cost-cutting mission for a while now, having announced several vessel sales and rationalizations of service offerings.<\/p>\n
“PIL\u2019s liquidity situation is extremely strained due to the unstable macroeconomic environment, sizeable vendor overdues, and its unsustainable capital structure,”<\/em> the company said in a presentation filed on the Singapore stock exchange intended for an informal meeting with the noteholders.<\/p>\n ” Substantial, escalating overdues to critical vendors have impeded PIL\u2019s ability to operate normally, and PIL requires a significant capital injection to restore long-term stability with vendors.”<\/em><\/p>\n PIL launched talks with Heliconia in May 2020 and the duo managed to agree on what has been described as a substantial investment worth $600 million.<\/p>\n \t\t\t<\/a><\/p>\n As disclosed, PIL has already completed the first stage of its comprehensive financing package having secured a $112 million emergency credit facility to fund overdue trade vendors and other critical cash requirements.<\/p>\n However, this has been described as an interim measure to boost liquidity while discussions on the broader financing solution were underway.<\/p>\n The second stage includes the $600 million financing from the investor that is intended to repay critical vendors, and recalibrate PIL\u2019s capital structure to sustainable levels.<\/p>\n The financing package will comprise a mix of debt and equity investment, the company said in the shared material.<\/p>\n PIL said that the financing proceeds from the second stage would also be used to repay the emergency credit facility. <\/p>\n The financially struck containership owner believes it will not be able to secure a better proposal for the company and its stakeholders from any other investor.<\/p>\n “If we do not get the required number of votes in support of the Scheme, this restructuring will fail,”<\/em> the company said.<\/p>\n “In absence of a comprehensive restructuring, PIL will likely face liquidation. In contrast, the current restructuring plan offers noteholders a significantly better recovery than liquidation.” <\/em><\/p>\n The scheme meeting is set to take place in January 2021 with a court hearing to sanction the scheme expected in February 2021.<\/p>\n The post Pacific International Lines offered $600M lifeline as it fights to avoid liquidition<\/a> appeared first on Offshore Energy<\/a>.<\/p>\n world maritime news<\/p>\n","protected":false},"excerpt":{"rendered":" Pacific International Lines (PIL) is seeking protection from the Singapore High Court from winding-up or enforcement orders as it tries to get its noteholders on board with a comprehensive restructuring plan. Under the plan, Singapore’s container shipping major is vying for fresh financing from Heliconia Capital Management Pte, an investment firm owned by Temasek Holdings, …<\/p>\n","protected":false},"author":1,"featured_media":21401,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[64],"tags":[13338,4735,11053,1148,5960,3054,13339,10979,249],"class_list":["post-21400","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-maritime-news","tag-600m","tag-avoid","tag-fights","tag-international","tag-lifeline","tag-lines","tag-liquidition","tag-offered","tag-pacific"],"_links":{"self":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts\/21400","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/comments?post=21400"}],"version-history":[{"count":0,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts\/21400\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/media\/21401"}],"wp:attachment":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/media?parent=21400"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/categories?post=21400"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/tags?post=21400"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n\t\t\t
\n\t\t\t\tPIL seeks debt payment delay, launches investment talks with Tamasek unit
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