Pacific International Lines Pte (PIL) has agreed with the majority of its financial lenders to defer its debt payments and has entered into discussions with Heliconia Capital Management, a subsidiary of Singapore’s state investment company Temasek.
The company has obtained a deferral of principal and interest payments and a formal standstill on enforcement actions from 15 of its financial lenders until December 31, 2020 for approximately 97.6% of its total debt.
For the remaining 2.4% of total debt, PIL continues to be in discussions with the two remaining financial lenders.
PIL said in a statement released on the Singapore Exchange: “In light of the significant challenges facing the container shipping industry, PIL has made significant progress towards rationalising our service offerings and reducing asset costs.
“However, despite the company’s best efforts, the persistent COVID-19 pandemic has caused the situation to worsen over the past month.”
PIL is also in discussions with a group of its finance lessors with a view to concluding a re-profiling of the relevant lease agreements.
The company is being advised by Evercore Asia (Singapore) Pte. On its strategic and capital raising alternatives and is currently in preliminary negotiations with Heliconia.