LORENZO SHIPPING CORP. said it has received approval from the Securities and Exchange Commission (SEC) to extend its authorized capital stock to P2 billion.
In a disclosure to the stock exchange on Thursday, the corporate said the SEC approved its application to lift its authorized capital stock from P991.18 million, divided into 991.18 million common shares with a par value of P1 each, to 2 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 complete 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 rise in authorized capital stock of the Company, subject to the approval of the Securities and Exchange Commission to the rise,” it said.
The corporate said proceeds from the subscription can 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 firms, container yard rentals, voyage service fees, vessel insurance premiums, and redundancy pay for workers.
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 within the Philippines and manages equipment, container yards, and warehouses. — Ashley Erika O. Jose