Heliconia Capital Management

PIL, soaring rates inadequate to escape liquidation

Pacific International Lines’ (PIL) management said that despite the recent hike in container freight rates, the Singaporean carrier remains overleveraged and needs further restructuring to survive.

During a meeting, on 15 January 2021, PIL’s management urged bond holders to vote for PIL’s proposed restructuring, due 1 February, in return for having bonds converted to perpetual securities. At least 75% of the bond holders must consent on the day for the restructuring to proceed. Perpetual...

https://container-news.com/pil-soaring-rates-inadequate-to-escape-liquidation/

PIL fine for Guam oil dumping adds to carrier’s woes

Pacific International Lines (PIL) has been fined US$3 million for the illegal dumping of oil from one of its ships into Guam’s Apra Harbor.

The offence was detected on 4 October 2019, after the US Coast Guard received a report, alleging that PIL’s ship, 1,080TEU Kota Harum, had discharged oil into Apra Harbor, in violation of the Clean Water Act.

The US Attorney’s Office subsequently charged PIL with failing to maintain an oil record book and discharging oily bilge water into Apra Harbor.

Maung...

https://container-news.com/pil-fine-for-guam-oil-dumping-adds-to-carriers-woes/

PIL fire sale continues with feeder pair

PIL has sold two more ships, as the troubled Singaporean liner operator continues its asset sales to bolster its balance sheet.

One of the ships, 2000-built 1,728TEU Kota Jati, was purchased by Chinese intra-Asia carrier, EAS International Shipping, and has been renamed EAS Osaka.

EAS operates services between China, South Korea and Japan, using a fleet of elderly vessels. The company is owned by Chinese property group Tianjin Yicheng, which acquired EAS from Malaysian conglomerate Kuok Group in...

https://container-news.com/pil-fire-sale-continues-with-feeder-pair/

PIL defaults on bond payments

Pacific International Lines is unable to make good on the principal and interest due to holders of an SG$60 million (US$43.8 million) bond issue that matured on 16 November 2020.

The cash-strapped Singaporean liner operator said in filing to the Singapore Exchange that it is not commercially feasible to pay out the principal and interest, which is 8.5% per annum. The bonds were issued in November 2018.

The suspension of the payouts had been conveyed to the bond holders at an informal meeting held...

https://container-news.com/pil-defaults-on-bond-payments/

Mounting debt could see PIL liquidation

Pacific International Lines (PIL) faces liquidation as a mounting debt burden, dwarfing the value of its assets, drags the company further into the mire.

Management at the struggling Singaporean operator disclosed more red ink during a meeting with bond holders on 11 November, revealing that net losses widened to US$795 million due to one-off impairment losses of US$590 million in 2019, while its losses were US$254 million In 2018.

A second financing tranche, amounting to US$600 million, will...

https://container-news.com/mounting-debt-could-see-pil-liquidation/

PIL files for court protection as restructuring plan takes shape

Pacific International Lines (PIL) has announced that it has developed a restructuring plan with its investors Heliconia Capital Management and has applied to Singapore’s High Court for protection while the scheme’s provisions are put in place.

The court application will also request leave from the courts to convene a meeting between PIL and its creditors so that the troubled carrier can explain the proposed scheme to creditors.

“The restructuring plan contemplates the provision of fresh financing...

https://container-news.com/pil-files-for-court-protection-as-restructuring-plan-takes-shape/

PIL sells two more ships

Pacific International Lines has sold another two ships as the troubled Singaporean liner operator works on bolstering its balance sheet.

South Korean feeder operator Taiyoung Shipping has purchased PIL’s feeder vessel, the 2004-built 756TEU Kota Tabah, renaming the vessel TY Incheon. While the sale price was undisclosed, VesselsValue assessed the ship to have a market value of US$2.45 million.

The other ship sold was the 2003-built 2,607TEU Kota Gunawan, to Middle Eastern interests for US$4.6...

https://container-news.com/pil-sells-two-more-ships/

PIL continues restructuring with ship sale to TS Lines

Pacific International Lines (PIL), the cash-strapped Singaporean liner operator, has sold yet another ship and it has been snapped up by Taiwanese intra-Asia carrier TS Lines, which has been expanding its owned fleet.

The 2006-built 4,253TEU Kota Lagu was sold for an undisclosed price, but VesselsValue indicates that the ship has a current market value of around US$8 million.

TS Lines has been expanding its fleet with second-hand purchases and newbuilding orders as the company wants to reduce its...

https://container-news.com/pil-continues-restructuring-with-ship-sale-to-ts-lines/

PIL extends Heliconia talks and offloads more ships

Pacific International Lines (PIL) has informed the Singapore Exchange that it is again delaying filing its annual return, with the names of the latest shareholders and paid-up capital figures, which was to be submitted by 29 September 2020.

The Singapore company is still in bailout discussions with Heliconia Capital, a unit of the Singapore government’s investment company Temasek Holdings. PIL MD Teo Siong Seng, said the company hopes to finalise talks by 26 November.

PIL also sought to push back...

https://container-news.com/pil-extends-heliconia-talks-and-offloads-more-ships/

Temasek bailout still under discussion as PIL offloads more ships

Struggling Singaporean liner operator Pacific International Lines (PIL) has said that by the end of September 2020, it expects to complete bailout discussions with a unit of the Singapore government’s investment company Temasek Holdings.

As such, PIL is delaying the release of its 2019 financial results, saying that the figures will be released after the debt re-profiling discussions are more advanced.

PIL has signed an agreement with the Temasek unit, Heliconia Capital Management, which prevents...

https://container-news.com/temasek-bailout-still-under-discussion-as-pil-offloads-more-ships/