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Court gives PIL rescue plan the green light

Pacific International Lines’s (PIL) proposed scheme of arrangement – a de facto debt workout – has been sanctioned by the Singapore High Court. This comes after PIL received support for the plan from its creditors last month.
PIL said the scheme would act as a key step towards the “successful recalibration” of PIL’s capital structure, giving investor, Heliconia Capital Management, part of Singapore’s sovereign wealth fund, a clearer path to come onboard.

“With a strengthened and sustainable financial position, a reinvigorated PIL will be in a position to capture the opportunities offered by improving market conditions,” PIL claimed in a release yesterday.

PIL, the world’s 12th largest liner, has been racked by severe financial problems, and has been forced to sell off many assets including around one-third of its container fleet. PIL’s fleet today stands at 264,485 slots, down from around 400,000 slots at the start of 2020, according to data from Alphaliner.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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