Asia/Pacific News
STX Pan Ocean Stock Sinks After Receivership Filing Accepted
The stock of South Korean commodities carrier STX Pan Ocean Co. Ltd. (STX Pan Ocean) fell to its lowest price ever as a court accepted its petition for receivership, Bloomberg reports.
Trading in the shares, which had been halted since June 6 when the price stood at 2,565 won ($2.27) on the Korean Exchange, resumed Tuesday, and the price was down to 1,860 won ($1.65) by Wednesday morning.
On the Singapore Exchange, the company fell from SGD3.32 ($2.64) on June 5 to SGD1.67 ($1.33) Wednesday morning.
The price on the Korean Exchange was the lowest since it entered the market in 2007.
The court's acceptance of receivership for the company means investors will lose value in their shares as creditors will swap debt for equity in a restructuring plan, said analyst Cho Byoung Hee of Kiwoom Securities Co.
"This is only the start of more pain for Pan Ocean and other units of STX Group," said Cho.
"It's important that court filing and other measures that will follow are done quickly to minimize the impact on Pan Ocean's business."
STX Pan Ocean, which said it had been battered by high bunker prices, low rates, and overcapacity in the shipping market, filed for bankruptcy earlier this month after its creditors decided not to acquire the company.
