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.