No Deal on Charter Rate Cuts for 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>

<< Jun 2018 >>
MTWTFSS
28 29 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

TRANSTEC 2018

TRANSTEC 2018 welcomes participants to explore Russian Ports and Shipping development opportunities…

read more >

Europort 2018

From 15-17 May 2018, the 12th edition of Europort Romania willl take place in the IDU Hall in Constanta…

read more >

The 27th World Gas Conference

The 27th World Gas Conference is the leading global industry event and is the definitive gathering of influential leaders, buyers and sellers, policy-makers and experts from around the world.

You will hear critical business insights and lively debates on the most topical issues facing the global gas industry today and in the future.

From 25-29 June 2018, Washington DC is expected to host 12,000 attendees, 500 speakers and 350 exhibitors representing, more than 600 companies from 100 countries.

Presented by the IGU, this is the largest and most high-profile gas event that is conducted by the industry for the industry.

Read More

read more >

SMM 2018

This is a must-attend event – a unique opportunity to meet key players, display business strengths, establish new contacts and exchange…

read more >