KDB to Bail Out Hyundai Merchant Marine

Image Courtesy: HMM

Troubled South Korean shipping company Hyundai Merchant Marine (HMM) is to become a subsidiary of state-owned Korea Development Bank (KDB) so as to avoid the company from going bust.

According to an official from HMM’s creditors, cited by the Business Korea, financial authorities and creditors will convert their bonds into equity and thus keep the company afloat until a normalization plan for the company is made.

The arrangement would be led by HMM’s largest shareholder, Hyundai Elevator.

As disclosed, the debt-for-equity swap will see KDB take 30 % of shares in total and the rest of the creditors will take 50% in shares.

The company has been in talks with ship owners since February on lowering freight rates, with a deal expected to be reached by the end of April.

Details on the amount of cuts and potential number of concerned ship owners were not revealed. However, based on the latest update, the company has reportedly managed to seal a deal with 60% of ship owners, and prospects for reaching a deal with the remaining ones are believed to be positive.

World Maritime News Staff

 

Share this article

Follow World Maritime News

In Depth>

Events>

<< May 2017 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31 1 2 3 4

CWC World LNG & Gas Series: Americas Summit

Now in its 15th year, the CWC World LNG & Gas Series: Americas Summit is the longest running LNG event in the Americas region.

Bringing together the key players in the LNG & gas value chain in both the Americas region and globally, this is the perfect place to make new contacts, do deals and get essential updates on the market.

This year we return to Houston, TX once again on 20-23 June 2017 – the heart of the energy industry, making it easier than ever to access they key players in your business.

More info

read more >

Nor-Shipping 2017

Nor-Shipping is the leading maritime event week. Their top-quality exhibition, high-level conferences and prime networking opportunities…

read more >

2ND ANNUAL PORTS AND TERMINALS INSURANCE SEMINAR

DETAILED GUIDANCE ON HOW THE INSURANCE MARKET IS CHANGING, HOW RISKS ARE ASSESSED AND WHAT…

read more >

2ND ANNUAL ADVANCED CHARTERING MASTERCLASS

The Advanced Chartering Masterclass will focus on the particularly difficult issues in charterparty agreements and our experts will help you find solutions…

read more >