‘More details on charter negotiations will be disclosed soon’: HMM
2016-05-24 05:19

‘More details on charter negotiations will be disclosed soon’: HMM

A chink of light has emerged in Hyundai Merchant Marine’s tricky negotiations with tonnage providers to get the fees of its chartered in fleet cut by around 30%, a key first hurdle set by creditors in order for it to avoid entering court receivership.

Despite the deadline having passed for the negotiations last week, HMM has continued to hold dialogue with owners around the world, and some kind of deal is likely to be announced later this week, sources within the company tell Splash.

“More details on charter negotiations will be disclosed once the details are finalised,” a spokeperson told Splash today.

The tonnage providers – including Danaos, Navios and Eastern Pacific – have failed to acquiesce thus far.

HMM paid KRW1.9trn ($1.6 bn) to 22 tonnage providers last year.

HMM said in a release today that it has fulfilled necessary requirements to hold bondholders’ meetings, which are scheduled to be held on May 31 and June 1.

HMM is going to hold a total of five bondholders’ meetings concerning all public bonds that are due this and next year.

During the bondholders’ meetings, HMM is going to propose the finalised plan of debt adjustment.

Today, creditors agreed with HMM’s plan for debt adjustment, which includes KRW700bn-level debt-equity swap.

“The decision signals that the creditors are fully committed to support HMM once charter negotiations and bondholders’ meetings are completed successfully,” the company said in a release.

“Normalization of HMM’s business is now only a matter of time as the company will be fully capable of joining the new alliance upon the completion of charter negotiations and bondholders’ meetings,” an unidentifed spokesperson was quoted in the release. HMM is keen to join THE Alliance, the newest container grouping, which already features NYK, MOL, K Line, Yang Ming, Hanjin Shipping and Hapag-Lloyd.

HMM’s shareprice closed today down 4%. It has dropped from KRW28,000 at the start of the year to KRW10,900 as a barrage of bad news about its financial situation has taken its toll in the first five months of the year.

Source: Splash 24/7

Source: Splash 24/7