Singapore carrier Pacific International Lines (PIL) has issued a strong statement denying reports that the company is suffering financial difficulties.
The company has made a series of sales including ships and a liner company in recent weeks as well as cutting services on the Pacific, while creditors were said to be concerned.
However, in its statement PIL said, “Recently, there have been rumours circulating on social media, making false claims about a potential bankruptcy of Pacific International Lines (“PIL”). PIL would like to clarify that these rumours are totally false, and the information and content derived therefrom are unfounded.”
Reports that PIL was under pressure came as the company announced it had ceased operating on the Transpacific trades a month after the launch of its new America Asia Service between he West Coast of the US and India’s west coast, the pendulum service was launched in January.
In March the company announced the sale of a number vessels, including two 12,000TEU vessels to Wan Hai. Later in the same month the company announced the sale of Pacific Direct Line to Neptune Pacific Line. By 23 March PIL Chairman Teo Siong Seng had made a statement to the Hong Kong Stock Exchange through PIL’s sister company, Singmas, stating that PIL owed the container manufacturer US$147 million.
In its statement to the Hong Kong Stock Exchange Singamas said: “As at the date of this announcement, the aggregate amount of trade receivables due from the PIL Group to the Group [Singams] in relation to such services and containers is US$147,423,000, a majority of which is overdue.”
Even so, PIL said that since the start of China’s recovery from the Coronavirus crisis the company says it has made steady progress. “As the (Covid-19) situation in China continues to improve, PIL and all our China subsidiaries have fully resumed operations on 9th March. PIL has been making steady progress and is currently actively preparing for a strong rebound after the epidemic.”
Furthermore, PIL believes its strategic business integration has meant the company is “Well-positioned to capture market opportunities brought about by the Belt and Road Initiative (BRI), and moving forward, PIL will continue to strengthen our leading position in the North-South routes.”
PIL added that the BRI along with a number of quantitative easing programmes will mean the company is well placed to take advantage of any upturn in the global economy.