Tasman sells one ship

Press, 21 December 1978, Page 18

Tasman sells one ship

PA Auckland As a further step in ’ts restructuring programme, Tasman Pulp and Paper Company, Ltd, has sold one of its two ships to the Developnxent Finance Corporation of New Zealand for SI3M. The company will retain the use of the vessel under a charter agreement with the DFC. Announcing the sale, the managing-director of Tasman (Mr L. C. Ryan) said Tasman had arranged through its associate company, Forestry Shippers, Ltd, for the repayment of its Japanese yen shipyard loans. '

l He said the original financing of the ships with off- , shore loans had exposed the • company to heavy exchange i losses because of the strengthening of the yen. ■ The repayment of the debt ■ had eliminated the exchange losses and was an important . step in consolidating the • company’s financial struci ture. Tasman acquired its two ships in 1977, the first i entering service in August ■ of that year and the second i in October. Mr Ryan said the productivity of the two ships had constantly im- ■ proved since they were com--1 missioned.

In terms of service and ■ dependability to customers : in Australia and in holding : down freight costs, Tasman’s : decision to become directly . involved in shipping had : been fully vindicated. (Last ; month the company reported : a record 20 day turnround : of its ships on the Tauranga- ■ Melboume-Tauranga run.) Recent moves in the com- > pany’s restructuring have inc eluded the raising of S2OM : through issues of redeemable I preference shares and debenI tures and the $5.4M sale of ) its holdings in Australian Newsprint Mills. Most Of • these funds have been used for term debt repayments.