South Korean bulker operator Pan Ocean has executed another round of debt-to-equity swaps.
The latest sees 518,789 shares being issued to creditors at a price of KRW12,500 (USD10.80) each.
These shares will go to creditors whose unsecured claims were confirmed in Pan Ocean’s initial rehabilitation plan but who had not submitted identification documents before the previous round of debt-to-equity swap was initiated.
Unsecured loans are those where property is not used as collateral.
Related news: Pan Ocean completes corporate rehabilitation
Merrill Lynch International will get 236,161 shares; SC Lowy Primary Investments will get 179,804; Augustea Atlantica will get 35,668; New Legend International Marine will get 27,699; Affinity Shipbrokers Australia will get 22,602; Sanko Holdings will get 6,082; Yang Ming Marine Transport will get 6,020; and Fernley International will get 4,666.
Two individuals, Byun Hyo-jung and Kim Sang-ki, will get 60 and 27 shares respectively.
Pan Ocean, formerly known as STX Pan Ocean, went into receivership on 17 June 2013 after incurring over 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 obtained the Seoul Central District Court’s approval to complete its corporate rehabilitation.
Also on 23 July, Pan Ocean announced that Harim Group’s holding company Jeil Holdings and Poseidon 2014 LLC have purchased newly issued shares as part of the takeover of the bulker firm.
Jeil Holdings bought 272 million shares while Poseidon 2014 LLC bought 68 million shares at KRW2,500 each.
This post was sourced from IHS Maritime 360: View the original article here.
