Pacific International Lines is starting to see the light at the end of the tunnel. On the verge of bankruptcy and forced to sell off a considerable number of its assets over the last two years, the company – whose bail-out plan was authorized in February with an injection of 600 million dollars by Heliconia Capital Management – announced today that it is now able to pay its creditors back ahead of schedule.
By the end of the year, holders of senior debt and option securities subject to the Scheme of Arrangement that PIL entered as part of its debt restructuring program will receive $1 billion.
The 12th largest carrier in the world has disclosed that it has benefited from the favorable economic climate. The skyrocketing freight rates have evidently enabled PIL to generate unexpected cash flows and to favorably adjust its debt position.
Executive Chairman SS Teo announced that with their healthy cash flow, the company thought it only fair to return the support shown to them by their creditors and partners by repaying their debts ahead of schedule.
PIL has let out that it will continue to maintain a streamlined business portfolio, focusing primarily on markets in China, Asia, Africa, the Middle East, South America and Oceania.
Translation by Giles Foster
