FESC intends to attract $300 million from the London Branch of ING Bank for modernization of its fleet
Far East Shipping Company (FESC OJSC) intends to attract up to $300 million from the London Branch of ING Bank for modernization of its fleet. This information has been provided by RZhD-Partner referring to Interfax. According to the Company’s representative, it is planned to approve several related to each other transactions at extra meeting to be held on October 6 by correspondence. The subject of the transactions should be the property to the amount of 50% of the company’s net assets value. The essence of the transactions: FESC OJSC acts as a guarantor in relation of two off-shore companies to be credited to the amount of up to $300 million by ING Bank. Seven vessels of FESC OJSC are to be a security of credit agreement performance. The purpose of the credit is partial financing or re-financing of the debt including Group’s internal loans appeared through assets acquisition. According to the source, those shareholders, which vote against the decision to approve large transaction or do not participate in the meeting will be entitled to demand redemption of their shares. The Company’s Board of Directors specified the value of the shares for redemption to the amount of 7.48 rubles per share with a nominal value of 1 ruble. The claims will be accepted from October 7 to November 20, redemption of shares - from November 21 to December 20 of 2006.