Hyundai creditors 'okay debt-for-equity swap', normalisation on horizon
Time：2016-05-27
Browse：183
"Upon the completion of charter negotiations and bondholders` meetings?Reuters reported that creditors agreed to a KRW680 billion (US$570 million) debt-for-equity swap, citing news from the Korea Development Bank.
"Our financial structure is improving with the tailwind from the sale of Hyundai Securities," HMM said. "HMM will continue doing its best to complete the charter negotiations as promptly as possible."
With creditors approving a debt-for-equity swap, Hyundai Merchant Marine (HMM) said it is continuing efforts to stabilise its business and normalisation is now only a matter of time.
What`s more the company feels it will be fit to join the new shipping consortium - THE Alliance - in April.
HMM said it will hold five meetings with bondholders on May 31 and June 1, where it plans to propose a "debt adjustment?plan that will also include debt-for-equity swaps.
HMM and the Korea Development Bank "are doing their best efforts to negotiate with shipowners on charter rates?and that "the negotiations will be proceeding without being bound to a specific timeline."
Those shipowners include a number of publicly traded companies including Danaos, Navios Maritime Partners and Capital Product Partners and other firms such as Zodiac Maritime Agencies and Eastern Pacific Shipping.
In response to a query about the negotiations from American Shipper, Danaos cited a "binding non-disclosure agreement between Danaos and HMM, thus, no comment on the developments.