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Western Bulk cashes in Pan Ocean claim for $12m

Western Bulk cashes in Pan Ocean claim for $12m
Western Bulk has announced it has gained $12m by selling off its claim against Pan Ocean.

A $31.8m claim was lodged against STX Pan Ocean, now Pan Ocean Co. Ltd, in 2013 for damages and hire after Pan Ocean went into receivership last year. A settlement agreement was recently reached between the two companies and reviewed by the Korean courts.

In its first quarter results, Western Bulk stated that the deal was likely to be settled 33% in cash and 67% in shares of Pan Ocean, with the cash spread over a 10 year repayment plan heavily loaded towards the end of the decade-long period.

Since the court's adjudication, Western Bulk has sold off its entire claim to a third party for cash in a deal expected to be finalised this month.

During 2013, Pan Ocean lost $1.77bn, had a $1bn debt-to-equity deal approved and its entire board removed. The company emerged with a Q1 profit in 2014.