Containership operator Pacific International Lines (PIL) has won Singapore High Court approval for its financial restructuring plan.
Judicial approval of the plan, known as a scheme of arrangement, comes after it received the thumbs up from creditors at a 1 February meeting.
High Court acceptance now opens the door for Heliconia Capital Management, a part of the Singapore state investment company Temasek Holdings, to become a major shareholder. Under the restructuring, Heliconia is to pump a planned $600m into the beleaguered company.
PIL said: “This is a key step towards the successful recalibration of PIL’s capital structure. In particular, it provides a clear path for the investor, Heliconia Capital Management, to invest in PIL as described in the scheme.”
Company management said that the approval now puts the company in a position to take advantage of the booming containership market.
Sustainable financial position
“With a strengthened and sustainable financial position, a reinvigorated PIL will be in a position to capture the opportunities offered by improving market conditions,” PIL said.
“PIL management is fully committed to the execution of the business plan, and to the company’s long-term recovery,” PIL said.
According to reports in the Singapore media, the family of company managing director SS Teo will see its shareholding diluted to under 15%.
The scheme of arrangement will take effect once it has been lodged with the Accounting and Corporate Regulatory Authority of Singapore.
TradeWinds earlier reported how Singapore’s PIL has recently started to make new senior staff appointments.
It took on former Maritime and Port Authority of Singapore director Goh Chung Hun as general manager for its fleet division.
