PIL: earlier USD 1 billion payback
Record freight rates continue to impact the high sea shipping industry. In Singapore, Pacific International Lines (PIL) has announced that PIL will be making an early repayment to creditors who were subject to the scheme of arrangement (scheme) which PIL entered into as part of its restructuring in Q1/2021.
The total amount to be repaid will be USD 1 billion. The carrier plans to satisfy all these obligations until 30 December 2021. Prepayment creditors of the scheme that PIL will repay by this date are the reinstated senior debt creditors and holders of the issued option A securities (option A SPCS) and option B securities (option B SPCS).
For option B SPCS, PIL thanks the holders for the 50% haircut voluntarily undertaken as part of the scheme. As such, PIL would redeem option B SPCS with each holder receiving 200% of the principal amount in total. This is above and beyond PIL’s contractual obligations to holders of option B SPCS.
SS Teo, executive chairman, PIL: “Over the past eight months, we have experienced the most dramatic turnaround in our financial position." (sh)