Yang Ming Seeks Trading Halt

Yang Ming Taiwanese shipping company Yang Ming Marine Transport Corporation (Yang Ming) has voluntarily suspended the trading of its stock on the Taiwan Stock Exchange from April 20 to May 3, 2017. The suspension is a standard procedure amid the companys recapitalization plan announced earlier this year, according to Yang Ming. The recapitalization plan is said to be one of the several components of Yang Ming’s comprehensive plan aimed at improving the company’s financial structure. Our recapitalization plan will initially allow Yang Ming to reduce its equity capital, after which infusion of new capital is then obtained from various private and public investors, the company said. During the pause, Yang Ming’s outstanding issued shares will be reduced to an approximate 1.4 billion shares, with a new share value anticipated to be about two times the share price prior to April 19. Other components of Yang Ming’s plan include measures to improve the company’s operational efficiency and reduce its cost. Yang Ming has ceased its container service to Iran due to concerns about rising tensions in the country, Reuters cited a company source as saying. The company could have decided for this move in an effort to reduce costs after it posted a full-year net loss of USD 493 million, compared to a loss of USD 258 million seen in 2015.