South Korean shipping company Pan Ocean has signed the investment contract with its preferred bidder Harim Group & JKL Consortium today.
The consortium, made up by poultry processor Harim and Korean private equity group JKL Partners, is expected to pay up to USD 968 million for the acquisition. The contract signing follows an approval from the relevant Korean bankruptcy court.
The deal will provide for Pan Ocean’s recapitalization through sale of equity, thus covering the company’s accumulated debt.
South Korea-based bulk carrier, formerly STX Pan Ocean, was put up for auction in mid-October.
Pan Ocean entered court receivership in June last year, for the second time in two decades, after its parent company STX Group failed to sell the unit due to an ongoing downturn in the industry.
However, based on the latest performance figures Pan Ocean seems to be on the right track of recovery due to a changeover to lower cost structure and implementation of rehabilitation plan.
Pan Ocean has about 90 vessels in its fleet.
World Maritime News Staff