PIL to repay scheme debts ahead of schedule

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The Board of Pacific International Lines (Pte) Ltd (PIL) is pleased to announce PIL 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 1Q 2021.

PIL will satisfy all Scheme obligations following the prepayment which is targeted to complete by 30 December 2021. The total amount to be repaid will be US$1 billion.

Creditors of the Scheme that PIL will repay by 30 December 2021 are the Reinstated Senior Debt creditors and holders of the issued Option A securities (Option A SPCS) and Option B securities (Option B SPCS).

The global shipping industry, including PIL, has generally benefitted since 2021 from strengthening freight rates due to restricted supply. These follow COVID-related disruptions to supply chains and port operations, which have resulted in a shortage of containers and vessel delays which reduced available shipping capacity. An increased pandemic-related consumption of physical goods, has also led to a rise in demand.

Mr SS Teo, Executive Chairman, PIL, said, “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.

“With our healthy cashflow situation, we decided that it was only right that we reciprocate the support shown to us by our creditors and partners, and repay the debts owed to all our Scheme creditors, ahead of schedule. We believe that they would benefit from the certainty of having cash returned to them earlier than anticipated.”