Anyway, today NOL announced a "rights issue" allowing current shareholders to purchase stock at a price less than the current market price.
SINGAPORE (AFP) — Singapore container shipping firm Neptune Orient Lines (NOL) announced plans to raise almost a billion US dollars through a rights issue.
NOL said the issue, amounting to 1.43 billion Singapore dollars (993 million US), would boost the company's balance sheet, help repay debt and tap any business opportunities that might arise.
About 1.1 billion new shares will be issued at 1.30 Singapore dollars each, which is about a 15 percent discount from NOL's stock close of 1.53 dollars on the local stock exchange Friday.
Shareholders eligible to subscribe will get three new shares for every four existing ones, NOL said in a statement.
I would say this is a good move on their part. They are going to need cash to get through this downturn, and, who knows what bankrupt carrier they might want to buy at a fire sale price.