HMM pushes ahead with $2.2bn capital raising exercise

HMM pushes ahead with $2.2bn capital raising exercise

Hyundai Merchant Marine (HMM) looks set to complete its remarkable recovery from the brink of financial extinction. The Korean line is pushing ahead with plans to raise KRW2.5trn ($2.2bn) via a mix of debt-to-equity swaps and retail investors coming in for shares.

HMM will issue new stocks worth KRW8,890 per share on August 5. If the take up goes as planned, then HMM’s six month dramatic restructuring will have proven a success with its debt to equity ratio sliding from a high of 5,309% in February to a projected 200%. Getting its debt ratio fixed will then allow HMM to tap into a new Korean government shipping fund to charter in new tonnage.

HMM is in discussions with Maersk and MSC to join 2M, the container alliance servicing the main east-west trades.

 

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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