Asia/Pacific News
Korean Bulker Owner Pan Ocean Puts Itself Up for Auction
South Korean shipping company Pan Ocean Co. Ltd. is putting itself up for auction, Tradewinds reports.
Citing to The Korea Economic Times, the sale is expected to bring in between KRW 600 billion and KRW 700 billion ($660 million).
The company announced last week that it had received court approval and that a sales notice had been printed in Korean newspapers on Wednesday.
Pan Ocean, formerly named STX Pan Ocean Co., was owned by South Korean trading services company STX Group until late 2013.
It filed for court receivership last June and split from cash-strapped STX in late December, initiating a $1.17 billion debt-to-equity swap as creditors took over the company.
The company changed its name early the following year.
Potential buyers have between November 10 and November 28, 2014 to conduct due diligence, with binding offers due by December 11.
Pan Ocean currently owns a fleet of 90 vessels, with four bulkers on order for a 2016 delivery.
Back in June of last year, the company cited the sharp decline in freight rates along with an oversupply of ships as reasons for its bankruptcy.
