Thailand-Based Precious Shipping Seeks $23 Million in Loans.

Byline: Srisamorn Phoosuphanusorn

Sep. 7--Precious Shipping Plc plans to borrow US$23 million from financial institutions to buy new vessels and buy back debentures.

After failing to find a business partner, the company is looking for other ways to attain its goals, with borrowing seen as the best way to achieve them.

The planned loan is part of the company's debt-restructuring programme that requires it to raise at least $15 million to buy back its redeemable convertible debentures by 2004. About $8 million is needed to buy 10 more tankers to replace older ships.

"We can't wait long for the money. We are now looking for credit from financial institutions as the most likely option," said Khushroo Wadia, a financial director. "It would not be the right time to increase the company's capital given the dull stock markets in Asia. Even so, that will be a long-term project."

Khalid Hashim, the managing director, said the company could not agree with two prospective partners on the value of Precious Shipping's shares.

The book value was US$1.80 each, compared with the current share price ranging from 30 to 40 cents on the Thai stock market. ...