Hyundai Group chairwoman Hyun Jeong-eun will cough up around KRW30bn ($24.4m) of her own money in a bid to save Hyundai Merchant Marine (HMM).
HMM, weighed down by more than $5bn debts, has stripped assets fast in recent months to stay solvent. A brokerage firm, a container terminal and HMM’s dry bulk division have all gone on the chopping block.
“We have decided to raise share capital by issuing 6 million shares (at 5,000 won apiece) through a third-party allotment,” HMM said in a regulatory filing.
Hyun and her mother Kim Moon-hee will buy 4m and 2m shares respectively. The shares will list in Seoul on March 4.
Hyun’s move comes as it emerges HMM has sent a letter to owners chartering vessels to the Korean line, begging for cuts in charter fees and warning the carrier is close to collapse.