April 22 - Pan Ocean intends to raise USD785 million through a new share sale, while reducing payments to its creditors, as part of a major restructuring programme.

Pan Ocean, which is currently emerging from bankruptcy following its purchase by Harim, issued its revised court rehabilitation plan on the Singapore Stock Exchange earlier today. The South Korean line revealed it would issued 340 million shares at KRW2,500 each (USD2.31). Cheil Holdings will be purchasing 272 million shares while Poseidon2014 will take up the remainder.

HLPFI reported on April 20, that Pan Ocean would issue 757,844 shares on April 29 as part of a debt to equity swap with its creditors. The main creditor listed is Merrill Lynch, which is awarded 595,924 shares. Other creditors include Nordana, Strategic Bulk Carriers and Korea Line Corporation.

Pan Ocean also claims it has USD854 million ready for repayment to its creditors. 81.96 percent of applicable corporates bondholders will be repaid in cash at a pre-determined date, and the remaining amount plus any interest will be waived. Banks will get 81.96 percent of their remaining claims under the same terms.

Pan Ocean will also consolidate its number of shares by 20 percent.