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.