South Korean shipping company Hyundai Merchant Marine (HMM) is reportedly considering sale of its oil tanker fleet as it grapples with financial difficulties.
The sale would be carried out within the bulk carrier division, as disclosed by the Business Korea, and it would include offloading over dozen vessels, 14 based on the company’s website information, those being Very Large Crude Carrier (VLCC), Suezmax tankers and seven petrochemical product carriers.
As informed, the step would be taken as a backup measure should the sale of the bulk division and the company’s Hyundai Securities be delayed.
In January this year, HMM said that it was in talks to sell its dry bulk shipping business to a compatriot private equity firm Hahn & Company, eyeing USD 497 million (KRW 600 billion).
The sale follows the company’s liquidation of a shipping terminal in Busan, container terminals in the U.S. and LNG transport business in 2014.
What is more, efforts aimed at bailing out HMM from financial troubles included the company’s Chairwoman Hyun Jeong-eun donate her own money, spending KRW 30 billion (USD 24.4 million) to acquire 4 million shares in the company’s new stock issue.
World Maritime News Staff