Pacific International Lines, the beleaguered Singaporean liner operator, has sold another bulk carrier, as it increasingly concentrates on its core container business.
VesselsValue reported PIL had sold the 2013-built 56,600dwt bulk carrier, Glovis Madrid, for US$9.7m, three months after selling the 2012-built 56,700dwt bulker, Glovis Maestro, for US$9.2m, both to unidentified Chinese buyers.
The sales leave PIL with ownership of three similar sized 2013-built bulk carriers, and observers believe the company will sell these ships to strengthen its balance sheet.
The remaining bulkers were commissioned as newbuildings by PIL’s former affiliate, Pacific Shipping Trust, on the back of long-term charters to South Korean operator Hyundai Glovis. When Pacific Shipping Trust was privatised in 2012, PIL absorbed the bulk carriers.
A PIL spokesperson told Container News, “PIL will continue to streamline the business for both profit improvement and to strengthen the balance sheet through ongoing network and cost rationalisation initiatives. These initiatives started in 2019 (before the investor (Heliconia Capital) came in) and have been taking place progressively throughout 2019 and 2020.”
PIL is seeking protection from Singapore’s High Court from its creditors while the company also informed bond holders that repayments of the principal sum and interest, due on 16 November, will be suspended.
A downturn in recent years has seen PIL struggle, eventually turning to Heliconia Capital, a unit of the Singapore government’s investment company Temasek Holdings, which is offering a S$600 million (US$452 million) loan.
Up to 30 June 2020, PIL had total liabilities of US$3.59 billion, including US$1.12 billion of bank loans that are due within a year.
The company has offloaded assets throughout this year, including its subsidiary Pacific Direct Line, while it also ended its operations on the Pacific trades earlier this year.
Martina Li
Asia Correspondent
