PIL seeks extension of moratorium as it is satisfying conditions for rescue deal

SINGAPORE carrier Pacific International Lines (PIL) has sought an extension of its existing moratorium which would otherwise expire on April 4.

The company, in a regulatory statement to the Singapore Exchange (SGX) on Monday, said that it - together with investor Heliconia Capital Management - fully intends to satisfy the conditions necessary for the completion of the investment before the expiry of the current moratorium order.

The boxship operator, however, is seeking to extend the order to the earlier of the occurrence of the restructuring effective date and the long-stop date June 30 under the scheme of arrangement.

As such, the company applied to the High Court on Monday for some leeway in case of unforeseen delay, as timelines are tight.

Heliconia will pump US$600 million into the privately-held PIL by a mix of debt and equity, with the temporary credit of US$112 million earlier given to be repaid.

PIL's debts - including loans, lease liabilities, bill payables and notes - surpass US$3.3 billion, and its 8.5 per cent notes were listed on the SGX.

Heliconia Capital Management is wholly owned by Temasek Holdings.