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.
Rotterdam’s intention to mandate the usage of MFMs goes down well with licensed bunker supplier VT Group; MFM providers supportive of move but stressed continuous monitoring is needed for optimum performance.
Cost of alternative bunker fuels, bunker operations and technology advancement are some considerations to be examined by the maritime industry, says Neo, director of SDE International Pte Ltd.
Kim Hyung Joon and Han Donghoon were planning to join the Singapore entities of Hartree Group - either Hartree Partners Singapore Pte Ltd or Hartree Marine Fuels - in October, discovered management.
‘When you think of Helmsman on the next occasion, think of us as lawyers with expertise in various fields. Come to us before a problem develops. It’s the process that matters,’ says Tang Chong Jun, Executive Director.
Bernard Chew was a former shareholder of MB Marine and was an authorised signatory of the company’s cheques at the material time, according to court documents obtained by Manifold Times.
Maersk, CMA CGM, BP and Stena Bulk give insights on availability of the three potential bunker fuel types, their plans, transition from fuel oil and LNG to alt fuels, how important sustainable marine fuels are to shipowners and more.