Yang Ming Suspends Share Trading Until May 4 as Part of Recapitalization Strategy Apr 24 2017

Taiwanese container shipping line Yang Ming yesterday suspended trading in its stocks on the Taiwanese stock exchange until May 4, to enable it to reduce its equity capital by more than 50%.


This step follows the January announcement that the Taiwanese line was pursuing a number of strategies, including seeking government and private investment in a bid to recapitalize after losing more than $650 million in less than two years.


Singapore-based analysts at Drewry say that Yang Ming's stock trading suspension is unlikely to herald a repeat of last year's Hanjin Shipping bankruptcy, which left global supply chains in disarray.


"We do not think this will have any knock-on effects in terms of services," they said. "Also, on the eve of the new alliances' network kick-off on April 1, members of THE Alliance -- Hapag-Lloyd, K Line, MOL, NYK and Yang Ming -- announced that they will create an independent trust fund to safeguard cargo in the event of any member lines going the same way as Hanjin. We do not think counter parties should be worried at this stage as we expect the Taiwanese government to intervene and bail out Yang Ming."


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