FESCO shareholders approve borrowing to build new container vessels

OJSC "The Far Eastern Shipping Company," the parent company in the FESCO Transport Group has summed up official results of the extraordinary general meeting of shareholders, which was held on May 18.Both large transactions concerning bank financing were adopted by over 99% of the shareholders who took part in the general meeting.The first transaction for over 181 million USD is connected with bank financing for acquisition of four new container vessels of 3,091 TEU each, which are being built at the Stocznia Szczecinska Nowa dockyard in Poland on the FESCO's order. The new vessels will be put into service in the period from 2008 to 2010. Construction of these new container vessels is yet another step of the Group's strategy of renewl of its fleet and strengthening of the FESCO's position in the container transportations market.The shareholders also approved another deal for two bank loans of 90 million USD each for partial restructuring of the borrowing the company made in 2006 to acquire shares of Transgarant and NKK.

This transaction will allow the company to cut the effective rate for the loan and to extend the period of the loan. This will reduce the short-term debt and improve the current liquidity position of the company.