Yang Ming Monday announced it has implemented a recapitalisation plan.
Yang Ming Marine Transport (Yang Ming) Monday announced it has implemented a recapitalisation plan that will see Taiwan's government grow its current 33 percent stake in the company.
"Customers and vendors can rest assured that Yang Ming is not in default of any obligations and any suggestions otherwise are patently false," stated the company.
"As it has been repeated in early advisories, Yang Ming has never approached its creditors with any demands to restructure any part of its debt, and Yang Ming does not have any intentions to do so going forward. Yang Ming has never failed to deliver in difficult times, even in the wake of the largest carrier bankruptcy."
Last week, Yang Ming batted away suggestions that it would consider a merger with another line, adding that it believes that the market's oversupply is likely to ease in 2017.
"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," said the company Monday.
Yang Ming says a stock consolidation plan, which was designed to reduce accumulated loss, was approved in a shareholders meeting on December 22, 2016.
Yang Ming remains prepared to take any measure necessary to maintain its competitiveness
The company further notes that it will receive an injection of fresh capital from new investors, with initial capital injection coming from government and private entities, including banks and financial institutions.
"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 $ 1.9 billion in government-backed funding should circumstances in the market arise requiring for such assistance."
"With this strong showing of government support, it is also expected to help enhance additional private sector investment in Yang Ming."
Yang Ming, which expects immediate benefits to its balance sheet from the move, says it will issue new stock to its investors.
In November, Ship & Bunker reported that the Government of Taiwan had approved $1.9 billion in funding, providing preferred interest rates for the country's container carriers, specifically, Evergreen Marine Corporation (Evergreen) and Yang Ming.