South Korean poultry processor Harim Corp. is set to wrap up its purchase of troubled dry bulk carrier Pan Ocean Co. after creditors and shareholders approved a rescue plan for the country's biggest bulk carrier.
Harim, partnering with JKL Partners, participated in the bid last year and was picked as the preferred bidder in December. The company paid over 1 trillion won ($895.5 billion) for the deal earlier this month.
Singapore and Seoul-listed Pan Ocean’s rehabilitation plan has been approved by the Seoul Central District Court, following the agreement of more than two thirds of unsecured claims creditors (87.0%) and more than half of shareholders (61.6%), the bulker owner said in a stock exchange filing.
The revised rehabilitation scheme will see the creditors recover 83% of the debt under a takeover deal with Harim Group & JKL Consortium.
The deal provides for Pan Ocean’s recapitalization through sale of equity, thus covering the company’s accumulated debt.
Pan Ocean, formerly known as STX Pan Ocean Co., has been under court receivership since June 2013 and was put up for sale in March last year. It was split from STX Group as the parent firm suffered a severe credit crunch.
With the acquisition, Harim's assets are estimated to surpass 5 trillion won, a condition which will bring the company under stricter regulation by the antitrust watchdog. The Fair Trade Commission releases its latest list of "large corporations" with an asset size of over 5 trillion won in April.