PACIFIC International Lines has revealed more details about its efforts to resolve its financial issues, saying talks with sovereign wealth fund Temasek’s affiliate Heliconia Capital Management are progressing.

A deal has been reached for interim funding of between $100m to $110m to allow the indebted company to meet its most urgent operational needs, PIL told Lloyd’s List.

It said it does not have any plans to sell its property in Singapore.

The container line, which has debts of some $3.9bn, acknowledged, however, that there have been developments on this front. “The intent of the expressions of interest exercise is to better assess the current market value of the building,” it said, adding that there is no connection between this exercise and negotiations with Heliconia.

PIL declined to reveal further details about the bailout discussions with the Temasek affiliate. “On the broader investment contemplated by Heliconia, PIL will make further announcements when there are material developments,” it said.

Reports have put the bailout amount from Heliconia at $400m, an amount thought insufficient to save the company, while also entailing a significant equity dilution for the controlling Teo family.

In relation to the future role of the Teos in management, PIL said: “It is premature for us to comment on this.”

Other efforts to save the company include rationalising services and reducing asset costs where necessary, the company noted, adding that “any further restructuring of services would be based on continual assessment of market conditions and no major downsizing is contemplated”.