Bondholders boost HMM’s alliance hopes
Hyundai Merchant Marine (HMM) announced that it has successfully completed all five bondholders’ meetings held on May 31 and June 1 by gaining agreements from the attendees with more than two-thirds of credited value while securing the consent of one-third of the total credited amount for its debt adjustment plan.
During the meetings, HMM explained about its debt adjustment plan, which includes debt-equity swap for over 50% of the stakes while the outstanding amount is to be payable in three yearly installments with a two-year grace period.
The company also emphasised that the bondholders will be able to immediately sell their shares acquired through debt-equity swap once the shares are issued.
The investors were also briefed that there has been some significant progress in charter negotiations, HMM said in a release today.
“With these successful results from yesterday and today’s meetings, HMM has managed to seal most of its restructuring plan, including sale of its assets, it announced in February. The company’s charter negotiations with foreign ship owners, which remains as the last piece of HMM’s plan for normalization, is also expected to reach a promising result soon, according to HMM,” the company said in a release today.
“HMM expects that joining THE Alliance will only be a matter of time,” it emphasised. THE Alliance, made up of Hanjin Shipping, NYK, MOL, K Line, Yang Ming and Hapag-Lloyd, was announced last month and HMM maintains it will join it before operations get underway in Q2 next year.