REPORTAGE
Lack of liquidity requires solutions Greek ship owners proceed with SPACs Greek ship owners have turned to the creation of special-purpose acquisition companies (SPACs) in an attempt to overcome the problem of a lack of liquidity in the market which at present is undergoing tough times. The abovementioned “special-purpose” companies are listed and try to raise capital from international markets with a view to investing it exclusively in shipping. These activities included the purchase of ships or companies, which are merged with a SPAC. SPACs are also referred to as “blank cheque companies” as the investor “blindly” entrusts his or her money to the company, which, however, is obliged to invest it within a timeframe ranging from 12 to 24 months, but without presenting investors Angeliki Frangou with a specific investment plan, only a general framework of its plans. In such case where investors’ money is not used within the set period, for an investment which has been to agreed to by at least 80 percent of shareholders, the company must return the funds. The creation of a blank cheque company cannot, of course, be undertaken by just anyone. Given that in the last four years of crisis, losses of listed shipping companies have reached 100 billion dollars and some company shares have fallen to less than one dollar, creating a SPAC is no easy matter. There are, however, Greek ship owners who, in the midst of the crisis, have created such companies and have already been moving in this direction since last January. Non-executive chairman of a newly launched blank cheque company is Leonidas Polemis, 43, son of Spyros Polemis, from the well known traditional shipping family and chairman of the International Chamber of Shipping. The position of chief executive is held by 37-yearold Matthew Los, also from a traditional shipping family and managing director of LPL Shipping SA. Mr Los is also involved with other companies engaged in energy and shipping. Sterios Souyoutzoglou, who has previous experience in both shipping and banking, has been appointed chief financial officer. Equipped, therefore, with all the prerequisites, names 30 SHIPPING APRIL 2012
and experience, the company filed an application to the US Securities and Exchange Commission with the aim of raising 50 million dollars. The company was established on the basis of Marshall Islands law and its stated
Victor Restis
fields of interest in the file include shipping, energy and logistics. Its board of directors also includes Anna Polemis, Nicholas John Frangos and Themistoklis Kalapotharakos. SPACs have also been established by: • Akis Tsirigakis who has raised 48 million dollars with the aim of investing in shipping (2011). • Angeliki Frangou who founded Navios Maritime Acquisition Corporation (2007), raised 200 million and invested in the purchase of ships. It should be noted that in 2004 Angeliki Frangou founded International Shipping Enterprises, which was subsequently merged with Navios to create Navios Maritime Holdings, which in 2006 issued bonds amounting to 300 million dollars on NASDAQ. • Victor Restis who founded Seanergy Maritime Corporation in 2007 and raised the amount of 231 million dollars on AMEX, which was invested in the purchase of ships. • Gabriel Panayiotidis who founded Oceanaut, Inc. in 2007. The company raised 150 million dollars on AMEX and invested in the purchase of ships. The company was dissolved in 2009. Finally, it is worth noting that borrowing by Greek shipping companies exceeds 60 billion dollars, of which 15 billion dollars is included in the portfolios of Greek banks!