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Pacific International Lines Restructuring Rescued
Team Sea and Coast | 01/04/2021
Singapore-based Pacific International Lines (PIL), is the largest carrier in Southeast Asia, had been struggling financially and was enforced to seek a court-managed reorganization due to pandemic pressures. The line is rescued, completing $600 million financial restructuring with new investments and cancellation of portions of the company's outstanding debt. 
The Singapore government's made a $200 million investment in the company in the format of convertible preference shares, under the terms authorised by the line's creditors, Heliconia Capital Management owned by Temasek Holdings. 
Heliconia approximately holds 15% of the company's share becoming the major shareholder fading the position held by the family of founder Teo Siong Seng. Heliconia also entrenched a credit facility of $200 million and a $200 million term loan for PIL. 
PIL issued $155 million in option securities, as part of the court-approved scheme and was approved to mark down and cancel approximately $45 million in bonds that had been due in 2020.
S.S.Teo, Executive Chairman of PIL said, "The completion and lucrative implementation of our restructuring is a golden chance for renewal in PIL and now the company is well-positioned for sustainable growth."
He also added, " Moving forward, we will advance to improve our business operations, deleverage the balance sheet and reinvent ourselves adapting to the ever-changing market and trade. I acknowledge Heliconia and our creditors and thank them on behalf of the board, for their sturdy commitment and their faith in PIL."
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