PIL debt restructuring plan approved by Singaporean Court

Embattles boxship operator Pacific International Lines (PIL) said on Wednesday that the High Court has sanctioned its debt restructuring plan.

The scheme will take effect once the company lodges a copy of the order made by the court with the Accounting and Corporate Regulatory Authority of Singapore.

Under the scheme approved by PIL’s creditors last month, Heliconia Capital Management, a wholly-owned unit of PIL investor Temasek Holdings, will become the majority shareholder in PIL while pumping in some US$600 million to rescue the company. The stakes held by the family of executive chairman Teo Siong Seng will be diluted to under 15 per cent.

The creditors comprise the holders of the S$60 million tranche of 8.5 per cent notes overdue since last November and other unsecured claimants as well as secured lenders.