The Board of Pacific International Lines (PIL) has announced that the company 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 the first quarter of 2021.
PIL will satisfy all Scheme obligations following the prepayment which is targeted to complete by 30 December 2021, while the total amount to be repaid will be US$1 billion.
“By satisfying the terms of the Scheme fully with the repayment and continued financial prudence, PIL will be able to enjoy a strong standing with financial institutions, customers and suppliers. This will enable PIL to strive ahead to grow a strong business built on a sustainable capital structure,” commented SS Teo, Executive Chairman of the Singaporean container carrier.
PIL will be a well-capitalised company with a solid financial structure and resilience to address and mitigate the cyclical nature of the industry going forward, according to a statement. Following the restructuring in 1Q 2021, PIL also implemented various business, financial and operational initiatives, enabling the company to benefit from this positive upturn in the shipping market.
“Over the past eight months, we have experienced the most dramatic turnaround in our financial position. In addition to the market recovery, our strong business fundamentals, ongoing restructuring initiatives and the hard work of our employees have improved our overall position,” said SS Teo.
In the near term, PIL noted its focus will be to continue to maintain a lean portfolio through regular reviews of its fleet size and service coverage to meet customer expectations, while looking ahead, the company will continue to exercise financial prudence while seizing all commercially beneficial opportunities to pursue growth.