Corporate Information

Polaris Shipping, a local bulk carrier, will repay its high-interest debt early this year and stabilize its governance structure.

Polaris Shipping said Meritz Securities plans to raise funds for repayment, repay all the funds borrowed from its parent company Polar Energy & Marine (Polar E&M) and financial investors (FI), simplify the borrowing structure, and resolve governance issues within this year.

As of the end of 2023, the amount of current debt the company had to pay back within a year was around 500 billion won. However, the company invested 160 billion won in proceeds from the sale of four 210,000-ton (goods heavy ton) Newcastle Max bulk carriers and 340 billion won raised by Meritz Securities in September last year through stock mortgage loans or BW issuance to put out the urgent fire.

In March last year, Polaris Shipping reportedly sold the 2020 Solar Pride (currently SEABIRD), Solar Quantum (currently SEABRILLIANCE), and the 2021 Solar Nova (currently SEABREEZE) and Solar Oak (currently SEABEAUTY) to Greek shipowner Tenamaris for a total of $262 million (about 380 billion won).

The funds drawn from Meritz Securities were used to repay 130 billion won in debts borrowed from private equity funds Consus Asset Management and Inius PE and 40 billion won in perpetual bonds issued to the Korea Ocean Business Corporation. The interest rate is 12.5%, which is lower than the previous 14% range. In addition, it purchased a 13.62% (12.75 million shares) stake held by Inius PE for 153.5 billion won.

The company will also repay Meritz Securities loans early. After already repaying 70 billion won at the end of last year, the plan is to reduce the amount of short-term borrowings to around 20 billion won by repaying the remaining balance within this year.

"As the market recovered last year, we have enough time for the company's finances," a company official said. "We plan to pay back about 130 billion won in the first quarter and repay an additional 120 billion won in loans in the second half to get out of the management crisis and resolve high interest costs."

The company earned 913.5 billion won in sales, 131 billion won in operating profit and 124.8 billion won in net profit by the third quarter of last year. (Marine Logistics Statistics 'Polaris Shipping Business Performance Trends (see 2019~3rd Quarter 2024)

Polaris Shipping, which has resolved governance risks, declared its key mission, vision and core values under the theme of the new year's catchphrase "Quantum Leap 2025" on the 9th.

At the event, which was attended by key executives and employees, the shipping company unveiled its key mission of "continuing to strive for customer satisfaction and contributing to society based on creative innovation, honesty and trust," and said all employees plan to work together to realize this.

In addition, ▲maximizing work efficiency customer service (business innovation) through the introduction of the Information Assistance System (PIAS), ▲building a new mid- to long-term charter fleet and expanding the in-kind business of medium and large bulk carriers (sales strategy), ▲expanding environmental organizations and energy saving activities, managing regulatory compliance risks, establishing sustainable management strategies (ESG management), and contributing to the local community through volunteer programs (social contribution activities) were selected as key tasks this year.