Deconstructing PanOceanic

by Matt McCleery

If you think the call option in PanOceanic’s revised consent solicitation sounds too good to be true, we at Marine Money would tend to agree. While we applaud the attempt of the underwriter and the shareholders to make this deal work by recapitalizing the company and putting in more equity, we do not think that such a transaction is commercially viable based on the present value of the fleet and current charter rates. As always, the quality of show depends on where you are sitting so in the pages that follow we will provide a little background on the deal and review the key elements of the revised consent solicitation from the perspectives of the company, the bondholders and the underwriter.

This is only an excerpt of Deconstructing PanOceanic

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