It has been reported that one of the world’s largest shipping lines, Pacific International Lines (PIL) which has its headquarters in Singapore, is in discussions with Helliconia Capital Management (a subsidiary of state owned Temasek Holdings) in relation to a bail out/cash injection to help the struggle shipping line.
A Pacific International Lines spokesperson said “In light of the significant changes facing the shipping line industry, PIL has made significant progress towards rationalizing our services and reducing asset costs, however the recent COVID pandemic has caused the situation to worsen over the last month”.
The Singapore stock exchange received a notice from PIL, stating that they had entered into an agreement with Helliconia for a six month period to access the potential for a Helliconia Capital Management investment in PIL, it went on to say that any more developments or material updates will be announced to the market.
Pacific International Line is looking to a debt restructuring and has received approval from 97% of debt holders for the deferral of principle and interest payments until the end of 2020, including a formal agreement to hold any debt enforcement action until the end of the year or until debt restructuring is complete.
PIL is in negotiations with one lender who have issued a demand for payment of over A$12 million. The lender issued the demand on 11May and has demanded payment by 21 May.
The International Shipping Company is also in negotiations with landlords and others and has warned that a default is likely .
The financial health of PIL has been the topic of many rumours and speculation , one story currently circulating is that the troubled carrier is about to declare bankruptcy.
Pacific International Lines (PIL) has rejected as scandalous and defamatory recent rumours that it is facing bankruptcy threatening legal action against those making false claims.
In a statement a spokesperson said, “Recently, there have been rumours circulating on social media, making false claims about a potential bankruptcy of Pacific International Lines (“PIL”). PIL would like to clarify that these rumours are totally false and the information and content derived therefrom are unfounded”
“We urge the public not to spread such fake news and misinformation. PIL reserves the right to pursue legal actions against those who generate and spread these defamatory rumours during this Covid-19 pandemic period and related false information after this statement.”
PIL recently sold its stake in PDL (Pacific Direct Line) which it has owned since 2006. To Neptune Pacific Lines .Pacific Direct Line (PDL) is a major Pacific Islands Shipping Line. PIL also offers shipping containers to Africa
The financial health of the privately-owned container line has become an increasing source of speculation in recent months.
In a strongly worded statement PIL said: “Recently, there have been rumours circulating on social media, making false claims about a potential bankruptcy of Pacific International Lines (“PIL”). PIL would like to clarify that these rumours are totally false and the information and content derived therefrom are unfounded.
“We urge the public not to spread such fake news and misinformation. PIL reserves the right to pursue legal actions against those who generate and spread these defamatory rumours during this Covid-19 pandemic period and related false information after this statement.”
PIL is considered one of the world’s top 10 international shipping lines, mainly moving shipping containers. The shipping company is PRIVATELY OWNED BY THE Singaporean based Teo family.