Under the plan, the largest container shipping company in Singapore is vying for new funding from Heliconia Capital Management Pte, an investment firm owned by Temasek Holdings, and for a re-profiling of the debts of the company via an agreement scheme.

The application is conditional on the approval of the scheme by the required majority of each class of creditors of the scheme on 1 February 2021.

Due to the effects of COVID-19 and market volatility, including high bunker prices and over-supply of capacity, the company began searching for investors who were faced with significant financial pressure.

The first stage of its comprehensive funding plan has already been completed by PIL, which has secured a $112 million emergency credit facility to fund overdue trade vendors and other essential cash requirements.

This was, however, described as an interim measure to improve liquidity while discussions were ongoing on the wider financing solution.

The second step involves the investor's $600 million funding to repay essential vendors and recalibrate the financial structure of PIL to sustainable levels.

For PIL, which would otherwise have faced liquidation, support for the structuring plan was necessary.

Maritime Business World