Creditors grant Hyundai Merchant Marine three-month debt extension
Time：2016-03-22
Browse：82
HMM said while its plan to reschedule debt was rejected on March 17, the Korean Development Bank (KDB) has said it will advance the plan at a second meeting March 22 with major creditors.
A voluntary agreement with between HMM and KDB expected on March 29. State-run KDB is the company`s biggest creditor.
HMM said the agreement "reflects government`s willingness to support HMM. There also was the comment from Finance Minister Kim Young-suk, saying HMM`s restructuring plan has been approved by the Financial Services Commission and its major creditor bank.
Bloomberg News said that HMM shareholders were asked to write down capital by 86 per cent, KRW173.2 billion (US$143 million) from KRW1.2 trillion as of April 21 to help improve its balance sheet.
The effect of charter renegotiation is discussed by Danaos in its annual report, filed with the US Securities and Exchange Commission.
Danaos charters 13 of its ships to HMM and derived 28 per cent of its revenue from HMM in 2015.