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Yang Ming provides update on 2nd round of recapitalisation plan

FOLLOWING the announcement in May month that it would unveil details of its new investors this month, Taiwanese ocean carrier Yang Ming recently said that the exercise was still "underway and ongoing."

Although this round is currently limited to select investors only, Yang Ming is studying the feasibility of opening the remaining rounds of issuance to current shareholders as well, and the carrier noted how this will take some time to complete, American Shipper reported.

Yang Ming concluded the first round of issuance back in February, acquiring US$54 million in investments from various public and private entities.

The amount of private placement pledged by investors thus far already exceeds the amount of capital Yang Ming raised in the first round of issuance.

Yang Ming had previously suspended trading on the Taiwan Stock exchange from April 20 until May 4 "as required to implement the recapitalisation plan," the carrier said. When stock resumed trading on May 4, following a reverse split, it was trading at twice its value before the suspension.

In addition, Yang Ming's earnings are beginning to improve, with the company decreasing its net loss 75 per cent year over year in the first quarter of 2017 to $29 million.

Yang Ming said recent performance indicators show continuing signs of recovery. Based on second quarter data, Yang Ming said it is "seeing a scenario where there is stronger demand over existing supply on many of the trade lanes Yang Ming serves."

Yang Ming is a member of "THE" Alliance, a vessel sharing agreement on major east-west trades that set sail in April, which also includes Hapag-Lloyd of Germany; and Japan's three largest ocean carriers, NYK, MOL and "K" Line.

The Taiwanese shipping line has an operating fleet capacity of 591,306 TEU, according to ocean carrier schedule and capacity database BlueWater Reporting's Carrier Ranking report.