In an update on its website, Yang Ming said the recapitalisation plan will result in a larger percentage of government owned and controlled interest, beyond the current approximate 33.3% held by the ministry of transportation and communications.
At a shareholders’ meeting held on 22 December 2016, shareholders voted to approve a share consolidation plan.
“This move was designed to pare down accumulated loss. Additionally, it was announced at the meeting that Yang Ming would receive injection of fresh capital from new investors,” Yang Ming stated.
“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.”
The help for Yang Ming followed the announcement of the Taiwanese government’s assistance program for the country’s shipping industry.
“While the predictions for 2017 appear to show some improvements for carriers, Yang Ming remains prepared to take any measure necessary to maintain its competitiveness, without sacrificing its dedication to its customers,” Yang Ming said.
“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 $1.9bn in government-backed funding should circumstances in the market arise requiring for such assistance.”
The container line further assured customers and vendors that the company is not in default of any obligations and “any suggestions otherwise are patently false.”
The company added that it has “never approached its creditors with any demands to restructure any part of its debt, and does not have any intentions to do so going forward.”
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