Korean shipping company Hyundai Merchant Marine has sold its 22.43 % stake in Hyundai Securities for KRW 1,24 trillion (USD 1,08 bn), the company said in a filling.
The sale comes as financially-troubled shipping line disposes of assets in order to remain liquid and restructure debt facilities.
As disclosed, KB Financial Group, South Korea’s largest retail banking group, bought the stake, having been selected as the preferred bidder at the end of March.
The company is currently in talks with ship owners on lowering the freight rates and a conclusion on the matter is expected by the end of April.
At the end of March, HMM managed to secure some breathing space from its creditors who agreed to a three-month maturity extension on the company’s debts.
Specifically, HMM’s creditors’ council, led by the Korea Development Bank (KDB) gave a green light to the extension of the company’s debt maturity from March 29 to June 29, giving more time to the company to try to normalize its financial situation and complete efforts aimed at boosting its liquidity.
HMM has loans of KRW 382 billion (USD 334 million) maturing in 2016 and KRW 606bn (USD 530m) in 2017.
World Maritime News Staff