Rejig at Pan Ocean
South Korean bulker operator Pan Ocean re-sumitted its rehabilitation plan to the South Korean court that will see discount rate of cash repayment and decision of reduction of capital.
The shipowner will see it reduce payments to creditors as it raises KRW 850bn ($785m) through a new share sale.
Pan Ocean went into receivership after incurring over $ 5 billion in debts in 2013, after being battered by tonnage overhang following the global financial crisis.
A series of debt-to-equity swaps saw Korea Development Bank become Pan Ocean's biggest shareholder.
The restructured company plans to issue 757,844 shares on April 29. The move comes as Pan Ocean settles claims arising from its recent bankruptcy.
The main creditor listed is Merrill Lynch, which is awarded 595,924 shares. Other creditors include Nordana, Strategic Bulk Carriers and Korea Line Corporation.
In February 2015 Pan Ocean signed the investment contract with its preferred bidder Harim Group & JKL Consortium.
This also coincides with Pan Ocean's announcement that it is currently making amendments.
It has been reported on March 25 that Pan Ocean had posted a profit of $748.5 million for 2014, recovering from the huge loss of $1.76 billion it posted during 2013.