Pacific International Lines (PIL) has finalised its restructuring plan on 30 March, agreed with creditors including Heliconia Capital Management, a unit of the Singapore Government’s investment company, Temasek Holdings.
[s2If is_user_logged_in()]After granting PIL a US$112 million emergency facility in July 2020, that has been apparently repaid, Heliconia agreed to a second financing tranche of US$600 million, comprising debt and subscription to US$200 million of convertible preference shares issued by PIL’s holding company.
Heliconia has also granted another US$200 million revolving credit facility that PIL can drawdown, but will need to be replenish these loans over the following years.
The Singapore High Court sanctioned PIL’s debt restructuring plan on 3 March, after the company’s bond holders voted on 1 February to accept PIL’s proposal to convert the bonds to perpetual securities.
The debt restructuring, which PIL referred to as a scheme of arrangement, will convert bonds to perpetual securities, but cash payments will be accrued for at least five years before being released to bond holders. Accordingly, over US$155.51 million of perpetual securities have been issued to registered creditors.
PIL’s executive chairman Teo Siong Seng said, “The completion and successful implementation of our restructuring is a chance for renewal in PIL, and the company is now well-positioned for sustainable growth. Going forward, we will continue to improve our business operations, de-leverage the balance sheet and reinvent ourselves as we adapt to the ever-changing market.”
PIL offloaded assets throughout 2020, including its subsidiary Pacific Direct Line, while it also ended its operations on the Pacific trades in early 2020, and sold 25 container ships.
Martina Li
Asia Correspondent
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