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.
The Second Informal Meeting held on 15 January 2021 aimed to address questions relating to the restructuring of the Group’s debt obligations (the “Restructuring”) that Noteholders may have. There were no votes at the Second Informal Meeting and no decisions were taken or any resolutions proposed.
With the support of the Investor,the comprehensive restructuring plan under the Scheme of Arrangement (the "Scheme") is carefully structured. The Noteholders are expected to yield significantly higher recoveries as compared to a situation where the Scheme fails.
The global shipping market outlook remains uncertain in 2021. However, the container shipping environment has shown signs of recovery over the last quarter. That said, a timely capital injection and capital structure recalibration remains necessary for the long-term health of the Company.
While the Scheme is in progress, PIL's operations will continue as usual.
Source:PIL
The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.
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