No Deal on Charter Rate Cuts for HMM

Image Courtesy: HMM

Financially troubled South Korean shipping company Hyundai Merchant Marine (HMM) has failed to seal a deal with ship owners on charter rate cuts, Yonhap reports, citing company officials.

The talks were launched in February and the company was optimistic on reaching the deal as it had reportedly managed to agree on cuts with 60 percent of owners. Under the plan, ship owners were requested to lower their charter rates by 28 percent on average by the middle of May, according to Yonhap.

This exerts further pressure on the struggling company which counted on the rate reductions as one of the key preconditions for the company to move forward with its restructuring process and thus avoid going bankrupt.

However, the talks between the two parties are not completely over and their might be still some room for an agreement.

Last month, HMM and state-owned Korea Development Bank (KDB) concluded a debt-for-equity swap arrangement, which will see KDB take 30 % of shares in total and the rest of the creditors will take 50% in shares in the company.

The move is expected to keep the company afloat until it completes its business normalization plan.

The company closed the first quarter of the year with an operating loss of KRW 162.9 billion (USD 139 million) and a net loss dived of KRW 276.1 billion.

World Maritime News Staff

 

Share this article

Follow World Maritime News

In Depth>

Events>

<< Nov 2017 >>
MTWTFSS
30 31 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 1 2 3

Maritime Information Warfare 2017

Maritime Information Warfare will focus on the growing need for navies to develop their information exploitation capabilities…

read more >

INTERNATIONAL GREEN SHIPPING AND TECHNOLOGY SUMMIT

The Summit will gather key marine experts and companies around the globe which have a big influence in the industry…

read more >

The CWC 18th Annual World LNG Summit & Awards Evening

The CWC World LNG Summit will continue to give you access to premium networking opportunities as it brings together the who’s who…

read more >

Marintec China 2017

The largest maritime event in Asia Pacific, Marintec China connects maritime professionals from the entire shipbuilding supply chain together.

Over the years, Marintec China has grown to reflect the size and importance of the Asian maritime market. 2015 event is another record-breaking edition with the largest exhibition area and the highest number of industry professionals attending ever. The encouraging figures proven that China remains one of the major shipbuilding nations and Marintec China has been the most authoritative platform in Asia.

With the maritime industry facing great opportunities but also many challenges, it is important for the industry to connect and engage more to ultimately win new business in globally-significant markets. A visit to Marintec China is a great way to learn about the latest technology and innovation of the supply industry, a platform for industry professional to meet face to face, make connection and do business.

Marintec China is poised to be the definitive event and is undoubtedly a must-attend for all involved in the maritime industry.

Marintec China will be held from 5 to 8 December 2017 at the Shanghai New International Expo Centre in Shanghai, China and continue its dedication to serve as the “LEADING” platform “CONNECTING” the community and “STRENGTHENING” the maritime industry.

Marintec China offers the perfect opportunity for companies serving the maritime market to showcase their innovations, products and services to a wide audience. A platform for face to face meetings in business, creating new relationships and consolidating existing ones.

More info

read more >