Hyundai Heavy hit by exposure to HMM

Hyundai Heavy hit by exposure to HMM

Hyundai Heavy Industries’ (HHI) decision to help out fellow Korean line Hyundai Merchant Marine (HMM) last year has landed it in a further awkward position. HHI, already reeling from many postponed and cancelled big offshore contracts, is likely to suffer for its decision last year to issue $220m worth of bonds exchangeable for HMM equities.

However, since HMM, now in debt restructuring, has seen its share price nosedive, investors in HHI’s bonds can demand that the shipyard repay their principal investment.

HHI is the second biggest shareholder with a 9.9% stake in struggling HMM. HHI has been hit by a recent credit ratings downgrade to A+ from AA-.

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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