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If Hyundai forced to restructure debt, Danaos will likely do the same

Time：2016-03-22 Browse：82 Author：RISINGSUN

GREEK containership owner Danaos Corporation has stated that it is at risk of having to restructure debt if Korea`s Hyundai Merchant Marine (HMM) is forced to restructure its obligations, reports American Shipper.

"It will have a significant impact on our ability to service our indebtedness," said Danaos in a filing with the US Securities and Exchange Commission.

"If Hyundai fails to meet its obligations to us as part of a court-led restructuring, we could sustain significant reductions in revenue and earnings which could have a material adverse effect on our business," said Danaos.

"In such an event, we could be unable to service our debt and other obligations and could ourselves have to restructure our obligations,?said the Danaos filing.

Many of the Hyundai charters are "significantly above current market rates and Danaos would be compelled to write down contracted charter rates and provide other concessions, such as we agreed in 2014 with Zim for six of our vessels."