Pacific International Lines' debt restructuring plan effective on March 30

BOXSHIP operator Pacific International Lines (PIL) on Wednesday announced that its debt restructuring plan had occurred on March 30, 2021.

The scheme was approved by PIL's creditors last month. Under the scheme, Temasek Holdings' wholly-owned Heliconia Capital Management will become the majority shareholder in PIL while pumping in some US$600 million to rescue the embattled company. The stakes held by the family of executive chairman Teo Siong Seng will be diluted to under 15 per cent.

PIL had its moratorium extension granted by the High Court on March 29 to the earlier of the occurrence of the restructuring effective date and the long-stop date June 30.

According to PIL's statement, the US$200 million investment by its investor Heliconia was completed on March 30 through the subscription of convertible preference shares into PIL's holding company.

The US$200 million term loan facility and the US$200 million revolving credit facility by Heliconia to PIL were also executed then. Further, the 8.5 per cent notes with an aggregate outstanding principal amount of US$60 million were marked down and cancelled.

PIL had also issued US$128,013,294 in aggregate principal amount of Option A securities and US$27,490,008 in aggregate principal amount of Option B securities under the scheme on March 30. The sole lead manager in relation to the issuance is Evercore Asia (Singapore).