Lorenzo Shipping Corp. hikes authorized capital stock to P2B

LORENZO SHIPPING CORP. said it has received approval from the Securities and Exchange Commission (SEC) to increase its authorized capital stock to P2 billion.

In a disclosure to the stock exchange on Thursday, the company said the SEC approved its application to raise its authorized capital stock from P991.18 million, divided into 991.18 million common shares with a par value of P1 each, to two billion common shares with a par value of P1 each.

It added that 252.2 million common shares with a par value of P1 each, or a total of P252.2 million, have been subscribed by National Marine Corp. (NMC) Of this amount, P211.82 million has been paid.

“The transaction pertains to the subscription of NMC to the increase in authorized capital stock of the Company, subject to the approval of the Securities and Exchange Commission to the increase,” it said.

The company said proceeds from the subscription will be used to settle obligations to port operators, dry-docking shipyards, vessel and container repair service providers, suppliers of vessel parts and maintenance materials, trucking companies, container yard rentals, voyage service fees, vessel insurance premiums, and redundancy pay for employees.

The remaining balance will fund vessel repairs, payments to shipyards, port operators, and trucking service providers.

Lorenzo Shipping, established in 1972 to handle domestic inter-island cargo, shifted from break-bulk to containerized shipping.

It operates a fleet serving major ports in the Philippines and manages equipment, container yards, and warehouses. — Ashley Erika O. Jose