A majority of bondholders voted on Friday to endorse a $200m rescue package for MPC Container Ships, staving off what was brewing to be the largest box shipping bankruptcy since Hanjin Shipping folded four years ago.
77% of bondholders agreed to the urgently needed senior secured bond issue, without which senior management had warned earlier could have seen MPC, one of the fastest growing boxship owners of recent years, go to the wall.
CEO Constantin Baack commented: “The bond amendments are an integral part of safeguarding values for our stakeholders and ensuring operational stability during and following the Covid-19 pandemic for MPC Container Ships, our employees and crew serving on board our vessels.”
The next step in MPC Container Ships’ recapitalisation plan is to execute an equity private placement. An extraordinary general meeting will be held next Monday to address an increase in the company’s share capital.
A host of owners have been circling in recent weeks to take a slice of the 68-ship MPC fleet in the event the company fails to resolve its financial problems.