Dear Valued Customers:
This advisory will update you further on Yang Ming's most recent
efforts to maintain competitiveness in the market.
Since the announcement of the Taiwanese government's massive US$ 1.9 billion
assistance program for the country's shipping industry, Yang Ming has been
proceeding with its own plans to improve on its competitiveness. Lead by its
management team, Yang Ming has instituted a recapitalization plan aimed to
provide immediate benefits to its balance sheets and improve on its liquidity.
In a December 22, 2016 shareholders' meeting, the shareholders voted to approve
a stock consolidation plan. This move was designed to pare down accumulated
loss. Additionally, it was announced at the meeting that Yang Ming would
receive injection of fresh capital from new investors. The first stage of this
injection of capital will be from various government and private entities, including
banks and financial institutions. Yang Ming will issue new stock to these
investors, and with the new capital Yang Ming expects immediate benefits to its
balance sheets. With this strong showing of government support, it is also
expected to help enhance additional private sector investment in Yang Ming. It
is also anticipated that the recapitalization plan will result in a larger
percentage of government owned and controlled interest in Yang Ming, well
beyond the current approximate 33.3% held by the Ministry of Transportation and
Communications of Taiwan(MOTC).
The management team of Yang Ming management has been instrumental in crafting
and putting the recapitalization plan in motion. Yang Ming's largest
shareholder (MOTC) has also been a strong supporter of the recapitalization
plan. The MOTC has been a solid advocate of the recapitalization plan and of
Yang Ming before the Taiwanese Congress.
As we head into the new year, Yang Ming assures its customers that it will
remain absolutely committed to finding solutions to stay competitive in the
industry. While the predictions for 2017 appear to show some improvements for
carriers, Yang Ming remains prepared to take any measure necessary to maintain
its competitiveness, without sacrificing its dedication to its customers. Yang
Ming will continue to take a conservative approach in its actions, but Yang
Ming is fully aware of and prepared to exercise on its option to draw on the
US$ 1.9 billion in government-backed funding should circumstances in the market
arise requiring for such assistance.
Customers and vendors can rest
assured that Yang Ming is not in default of any obligations and any suggestions
otherwise are patently false. As it has been repeated in early advisories, Yang
Ming has never approached its creditors with any demands to restructure any
part of its debt, and Yang Ming does not have any intentions to do so going
forward. Yang Ming has never failed to deliver in difficult times, even in the
wake of the largest carrier bankruptcy.
To our valued customer, we sincerely thank you for continued
support. Yang Ming remains dedicated to ensure that the delivery of your
shipment is guaranteed.
Thanks and best regards,
Yang Ming Marine Transport Corp.
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