The company has been on a cost-cutting mission for a while now, having announced several vessel sales and rationalizations of service offerings.
However, PIL said that despite these efforts, the “persistent COVID-19 pandemic has caused the situation to worsen over the past month”.
PIL revealed in a stock exchange filing that it has obtained the in-principle approval of a majority of the financial lenders, accounting for the 97.6 percent of the company’s debt, for a deferral of principal and interest payment until December 31, 2020, and a formal standstill on enforcement actions until the end of 2020 or until a formal debt repayment-profiling agreement is reached.
Talks with remaining lenders that represent 2.4% of the company’s debt remain in progress. One of the lenders had sent PIL a letter dated May 11, 2020, demanding the repayment of $12 million within 10 business days.
What is more, the company said that it may default on the payment on the principal amount of SG$60 million ($42.37 million) of bonds that are due later this year.
Separately, PIL revealed that it has entered into an agreement with Heliconia Capital Management Pte, an investment firm owned by Temasek Holdings, in relation to a potential investment.
Evercore Asia (Singapore) Pte, which advises PIL on its capital raising alternatives, is in talks with Heliconia.
The exclusive talks are in a preliminary stage and there are no guarantees a deal would be struck, PIL said.
Source: http://worldmaritimenews.com