PIL has sold two more ships, as the troubled Singaporean liner operator continues its asset sales to bolster its balance sheet.
[s2If is_user_logged_in()]One of the ships, 2000-built 1,728TEU Kota Jati, was purchased by Chinese intra-Asia carrier, EAS International Shipping, and has been renamed EAS Osaka.
EAS operates services between China, South Korea and Japan, using a fleet of elderly vessels. The company is owned by Chinese property group Tianjin Yicheng, which acquired EAS from Malaysian conglomerate Kuok Group in 2007. The vessel acquisition takes the EAS owned fleet to seven ships.
German tonnage provider Briese Schiffahrt bought the other ship, 2010-built 1,810TEU Kota Nelayan, which has been renamed Mellum.
VesselsValue estimated the prices for EAS Osaka and Mellum at US$3.34 million and US$10.59 million, respectively. Both ships left PIL’s fleet on 23 December 2020.
PIL is seeking protection from Singapore’s High Court from its creditors and has suspended repayments of the principal sum and interest on bonds, due on 16 November 2020.
Economic crises in recent years has seen PIL struggle, eventually turning to Heliconia Capital, a unit of Singapore’s state-owned investment vehicle Temasek, which is offering a S$600 million (US$452 million) loan.
Up to 30 June, PIL’s total liabilities were US$3.59 billion, including US$1.12 billion of bank loans that are due within a year. PIL’s management will meet creditors on 1 February to discuss the debt reprofiling and repayment arrangements.
The company has offloaded assets throughout 2020, including its subsidiary Pacific Direct Line, while it also ended its operations on the Pacific in early 2020.[/s2If]
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Martina Li
Asia Correspondent
