Embattled Korean line Hyundai Merchant Marine (HMM) plans to raise more than KRW2.5trn ($2.1bn) from a new share issuance in its latest restructuring move.
HMM will issue 236m new shares on August 5 at KRW10,700 per share to pay maturing debts and secure operating capital.
HMM is likely to reveal how its negotiations have gone with tonnage providers to reduce its charter costs as early as this week. Creditors have demanded HMM negotiate close to 30% savings from its chartered in fleet as a key first hurdle if the line is to avoid going into receivership.
HMM is in a race to fix its financial position so that it can then negotiate its entrance to new container grouping, THE Alliance, which is scheduled to commence operations next April.