Taiwanese ocean carrier Yang Ming Marine Transport has laid down a broad, multi-pronged action plan, backed by government support, to undertake a large capital infusion to bring its debt levels to a more sustainable level.
Yang Ming also assured it has not defaulted on its financial commitments.
“Since the announcement of the Taiwanese government’s massive US$1.9 billion assistance program for the country’s shipping industry, Yang Ming has been proceeding with its own plans to improve on its competitiveness,” said the company in an official statement published on its website on January 23.
This involves a recapitalization plan that seeks to provide “immediate benefits to its balance sheets and improve on its liquidity.”
The first stage of this injection of capital will be from various government and private entities, including banks and financial institutions.
“Yang Ming will issue new stock to these investors, and with the new capital Yang Ming expects immediate benefits to its balance sheets. With this strong showing of government support, it is also expected to help enhance additional private sector investment in Yang Ming,” said the liner company.
The carrier anticipates as well that the recapitalization plan will result in a larger percentage of government owned and controlled interest in Yang Ming, well beyond the current approximate 33.3% held by the Ministry of Transportation and Communications.
It added that while the predictions for 2017 appear to show some improvements for carriers, Yang Ming remained prepared to take any measure needed to stay competitiveness.
“Yang Ming will continue to take a conservative approach in its actions, but Yang Ming is fully aware of and prepared to exercise on its option to draw on the US$1.9 billion in government-backed funding should circumstances in the market arise requiring for such assistance.”
The container shipping line also declared that it is not in default of any obligations and “any suggestions otherwise are patently false.”
“As it has been repeated in early advisories, Yang Ming has never approached its creditors with any demands to restructure any part of its debt, and Yang Ming does not have any intentions to do so going forward. Yang Ming has never failed to deliver in difficult times, even in the wake of the largest carrier bankruptcy,” referring to the collapse of Korean carrier Hanjin Shipping last August.
“As we head into the new year, Yang Ming assures its customers that it will remain absolutely committed to finding solutions to stay competitive in the industry,” it added.
Photo: A.Savin
