South Korean bulker operator Pan Ocean has executed another round of debt-to-equity swaps on 1 October.
This saw 1,505,135 shares being issued to creditors at a price of KRW12,500 (USD10.58) each.
These shares will go to creditors who had confirmed claim amounts on the initial rehabilitation plan but had not submitted identification documents to Pan Ocean in the previous debt-to-equity period. That was for those who confirmed claim amounts after the Seoul Central District Court approved the company’s revised rehabilitation plan on 12 June 2015.
KEB Hana Bank, formed from the July 2015 merger of Korea Exchange Bank and Hana Bank, will get 1,337,164 shares; the London branch of Deutsche Bank will get 81,053; Kleimar will get 18,868; Alfonsino Shipping will get 16,227; Sinotrans Shipping Chartering will get 14,724; Dong Fang International Asset Management will get 12,055; Darnley Maritime will get 9,351; Aceamerican Insurance will get 5,498; Oldendorff Gmbh will get 5,150; Oldendorff Carriers will get 3,709; Yang Ming Marine Transportation will get 1,201; and Bulkhaul Korea will get 135.
Pan Ocean, formerly known as STX Pan Ocean, went into receivership on 17 June 2013 after incurring more than USD5 billion in debts, largely due to the chartering-in of ships at high rates during the good years and subsequently suffering losses when the freight market collapsed.
A series of debt-to-equity swaps and negotiations with creditors has enabled the company to settle most of the debts.
Pan Ocean, which has been acquired by South Korean poultry processor Harim Group, has since completed its corporate rehabilitation.
This post was sourced from IHS Maritime 360: View the original article here.