HMM Nets USD 570 Mn Debt-for-Equity Swap Deal

Struggling South Korean shipping company Hyundai Merchant Marine has concluded a deal with its creditors, led by the state-run Korea Development Bank, on a debt-for-equity swap worth KRW 680 billion (USD 570.27 million), the company confirmed in a stock exchange filing.

Previous reports claimed that 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 announcement comes on the back of the company’s talks on cutting charter rates with ship owners, the first round of which fell through as no deal could be reached. The talks resume.

HMM promised its creditors to reach a 28% cut in charter rates with ship owners in exchange for financial assistance. The company’s ability to avoid court receivership is also a precondition for it to enter the new carrier alliance together with Hapag-Lloyd, “K”Line, Mitsui O.S.K. Lines, Hanjin, Nippon Yusen Kaisha and Yang Ming.

Namely, HMM is still in talks on potential membership. However, the company believes that this is just a matter of time, pending completion of its business normalization process.

HMM’s operating loss for the first quarter of 2016 hit KRW 162.9 billion (USD 139 million) against KRW 253.5 billion from the corresponding period last year. Its net loss dived to KRW 276.1 billion further widening from KRW 44.5 billion loss from a year earlier. The company’s debts amounted to KRW 5.2 trillion at the end of March.

World Maritime News Staff

Share this article

Follow World Maritime News

In Depth>

Events>

<< Feb 2020 >>
MTWTFSS
27 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 1

The 9th Annual Event Green Shiptech China Congress 2020

The 9th Annual Event- Green Shiptech China Congress 2020 will be held on next…

read more >

Belgian Offshore Days 2020

During this event, a conference will be held with focus on “Increasing value by data driven innovation…

read more >

7th Annual Arctic Exchange

Every year the Exchange invites delegates from across the globe to come together to listen to key senior management teams…

read more >

World Future Ports Summit 2020

This event will bring together ports and maritime shipping professionals from global leading companies and authorities to discuss recent digital technologies…

read more >