Hyundai Merchant Marine (HMM) will not be drawn on whether it will pick up assets from bust compatriot line Hanjin Shipping. Hanjin sought court receivership yesterday with debts of $4.2bn becoming the largest bankruptcy in container shipping history. The South Korean financial regulator, the Financial Services Commission (FSC), suggested HMM is now likely to buy Hanjin’s “good” assets.
However, HMM, itself just out of another harsh restructuring exercise, is remaining cautious on taking on extra burdens.
“Currently, there are no set plans for taking Hanjin’s assets. HMM will discuss them later with the FSC more in detail,” a spokesperson for HMM told Splash today.
With supply chains out of South Korea taking a hit from Hanjin’s demise, HMM has agreed to deploy 13 or more of its ships to cover two routes operated by Hanjin.
HMM will offer a “reasonable” shipping rate to ease the burden of increases in freight costs for South Korean firms, the FSC said in a statement today.
LG Electronics, the world’s second-largest manufacturer of televisions, is one of many Korean shippers plunged into chaos following yesterday’s bankruptcy. It has revealed it uses Hanjin for up to a fifth of its deliveries to the US.
Were HMM to push ahead with a take over of Hanjin it would be bad news for members of new container grouping THE Alliance, which is due to start operations next April, as outlined in the graph below provided by SeaIntelligence Consulting.
Splash will be providing continued updates on the Hanjin upheaval. To view our full archive on container shipping’s largest ever bankruptcy, click here.
Good Day: I, Find it hard to believe that: HANJIN SHIPPING, Had Far Superior Management, and Its Debt Load, Was a Mere $4.1B vs Hyundai Merchant Marine, Now 850% Debt to Equity Balance, Today, 9/1/16 Missed a $2B Payment, To Its Larger Lender, Korea Development Bank, and Hyundai has debt that far exceed HANJIN Plus Missed Interest, Payment Totaling $7.6B. Who Greased Who Hands in This deal??? HANJIN, As I, said to you on Wednesday, August 31, 2016, You did the right thing in Filing Bankruptcy. No One cant ever tell you you did not try, and stay in the game. You were forced out by a bunch of dirty players, That want to win the game more. Good Things, It Wont be Hyundai, or Korea Development Bank, (KDB) Either…They will go down faster then you did…Good Luck.