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 Singapore court was planning to enforce a seizure and sale of the asset to pay a USD 705,594.45 debt owned by GP Global APAC to Equatorial Marine Fuel Management Services via a judgement.
‘We intend to expand our product portfolio to include VLSFO bunker deliveries at a later stage; after investments into the MGO bunkering segment have been complete,’ Director tells Manifold Times.
Fast Energy Sdn Bhd is currently exploring collaboration with a major Malaysian bunker supply firm operating at Port Klang; the operation will be supported by CCK Petroleum upon finalisation.
Veritas Petroleum Services records numerous contaminants such as plastic, fibres, black gum, paraffins, fatty acids, and other component found in the off-spec RMK 700 marine fuel.
Course includes topics on valid and binding transactions; quality or quantity disputes; shipping issues; contract termination; claims; insolvency and others. Registration closes 25 February 2021.
All bunker vessels that have received the necessary clearance for out of port bunkering operations may do so at the stated Tompok Utara coordinates only or risk penalty, according to the MMEA.