June 19 - After a court accepted its application to seek protection from creditors, STX Pan Ocean Co, South Korea's largest commodities-shipping company, has seen its shares slump to their lowest levels in Seoul since it was originally listed.
Trading in the shares had been halted since June 6, and the company filed for court receivership the next day after a court accepted its application to seek protection, when share trading recommenced.
Analysts have reportedly said that this is only the start of more pain for Pan Ocean and other units of STX Group, adding that the court's acceptance will mean investors most likely would see their equity written down, with creditors most likely being asked to swap debt for equity, under any company restructuring.
As we reported on June 7, STX Pan Ocean filed for court receivership after a drop in shipping rates left it unable to pay off its debts (http://tinyurl.com/kouegss).
www.stxpanocean.com
