PIL said in a Singapore Exchange filing that it entered into an "exclusivity agreement" with Helliconia for a six-month period starting May 26 for a potential investment.

PIL noted that discussions are on the preliminary stage and updates would be announced if there would be any material developments although there is no certainty either that any deal would be finalized.

“In light of the significant challenges facing the container shipping industry, PIL has made significant progress towards rationalising our service offerings and reducing asset costs. However, despite the company’s best efforts, the persistent COVID-19 pandemic has caused the situation to worsen over the last month,” PIL told the stock exchange.

"As discussions with Heliconia progress, the board will make further announcements as and when there are any material updates or developments. Until such time, neither the company or Heliconia will make further comments on this matter," it added.

While discussions with Heliconia is ongoing, PIL has also started talks with 15 of its financial lenders to seek their support for a "debt re-profiling plan" —  and has secured greenlight from holders of 97.6% of its debt for deferral of principal and interest payments until the end of December 2020. 

These lenders have also expressed support for a formal standstill on enforcement actions until the end of the year, or until a formal debt re-profiling agreement is entered into.

PIL is the world's tenth biggest container shipping line privately-owned by the Teo family, whose patriarch Teo Siong Seng was formerly nominated Member of Parliament.