Singaporean liner operator Pacific International Lines is continuing to offload its ships as it works to bolster its balance sheet, in preparation for its critical creditors meeting on 1 February.
[s2If is_user_logged_in()]PIL’s latest ship sale is a 1,391TEU multi-purpose vessel, the 2012-built Kota Bintang, which was sold for US$16.61 million.
The buyer is Pacific Carriers Ltd, a Singapore-based subsidiary of Malaysian conglomerate Kuok Group, and the ship has been renamed PAC Capella. Pacific Carriers operates an intra-Asia service through its subsidiary, PACC Container Line.
PIL is seeking protection through Singapore’s High Court from its creditors and has suspended repayments of the principal sum and interest on bonds, due on 16 November 2020.
PIL has struggled in recent years, eventually turning to Heliconia Capital, a unit of the Singapore Government’s investment company Temasek Holdings, which is offering a S$600 million (US$452 million) loan.
PIL had total liabilities of US$3.59 billion in June 2020, including US$1.12 billion of bank loans that are due within a year. PIL’s bond holders will vote on 1 February as to whether to accept the company’s proposal to convert the bonds to perpetual securities.
If the restructuring proceeds, Heliconia will offer another US$200 million revolving credit facility that PIL can drawdown. Amounts drawn down under this facility will need to be replenished in the following years by the company.
The company has offloaded assets throughout 2020, including its subsidiary Pacific Direct Line, while it also ended its operations on the Pacific trades in early 2020.[/s2If]
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Martina Li
Asia Correspondent
