Singapore-based Pacific International Lines (PIL), ranked 10th amongst the top containership operators in the world, on Tuesday (26 May) announced a debt re-profiling exercise and potential investment.
“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,” it said in a statement on Tuesday.
“However, despite the Company’s best efforts, the persistent COVID-19 pandemic has caused the situation to worsen over the past month.”
Due to the development, PIL commenced discussions with 15 of its financial lenders with a view to concluding a formal agreement concerning a debt re-profiling plan.
The company has since requested and obtained the in-principle approval of a majority of the financial lenders (representing approximately 97.6% of the total debt) for a deferral of principal and interest payments until 31 December 2020; and a formal standstill on enforcement actions until 31 December 2020, or until a formal debt re-profiling agreement is entered into, whichever is earlier.
Discussions are still continuing with two financial lenders representing the remaining 2.4% of the total debt with a view to obtaining their in-principle approval for the above matters.
In particular, one of the lenders had issued a letter of demand to PIL on 11 May 2020 for US$12,641,059.38 be paid within 10 business days.
The standstill on all principal and interest payments to the financial lenders and requested for an agreement for a moratorium on enforcement actions against PIL and/or its assets will also likely result in events of default arising under its financing agreements, cautions PIL.
Moving forward, the company pointed out it has entered into an exclusivity agreement with Temasek subsidiary Heliconia Capital Management Pte. Ltd. (Heliconia) for a term of six months from 26 May 2020, in relation to a potential investment.
PIL is being advised by Evercore Asia (Singapore) Pte. Ltd. on its strategic and capital raising alternatives, and is currently in preliminary negotiations with Heliconia.
The top three positive movers in the 2020 bunker supplier list are Hong Lam Fuels Pte Ltd (+13); Chevron Singapore Pte Ltd (+12); and SK Energy International (+8), according to MPA list.
‘We will operate in the Singapore bunkering market from the Tokyo, with support from local staff at Sumitomo Corporation Singapore,’ source tells Manifold Times.
Changes include abolishing advance declaration of bunkers as dangerous cargo, reducing pilotage fees on vessels receiving bunkers, and a ‘whitelist’ system for bunker tankers.
Claim relates to deliveries of MGO to the vessels Pacific Diligence, Pacific Valkyrie, Pacific Defiance, Crest Alpha 1, and Pacific Warlock between March 2020 to April 2020.
3,490 mt of LSFO from Itochu Enex was lifted at Universal Terminal; the same bunker stem was bought by Global Marine Logistics and delivered by bunker tanker Juma to receiving vessel Kirana Nawa.
Representatives of Veritas Petroleum Services, Maersk, INTERTANKO, ElbOil Singapore, and SDE International provide insight from their respective fields of expertise on what lies ahead.