Hyundai Merchant Marine (HMM) and Korea Development Bank (KDB) will sign a voluntary agreement on March 29 that will extend the maturity of HMM’s principal and interest of debts by three months.
The agreement will also include debt readjustment planning, “based on a due diligence conducted by an external accounting firm”, KDB said.
The bank said it will go ahead the voluntary agreement to “fully support the management normalization of HMM as HMM’s restructuring plans, including charter cut negotiation with shipowners, are making some progress”.
KDB expects the agreement will give “a high degree of momentum” to the ongoing negotiations between HMM and its creditors, which include reducing charter payments with shipowners and debt adjustment with creditors under non-agreement.
The bank will finish consulting with the South Korean carrier’s major creditor banks on March 22. Creditors rejected HMM’s debt rescheduling item at a meeting held today.
To adjust the debts, HMM and KDB are planning another creditors’ meeting for all HMM’s publicly placed bonds, including those due April, which were rejected to extend its maturity.
“Creditor banks will use their utmost endeavors to minimize losses for all interested parties and normalize HMM’s management,” KDB said in a statement.
“We ask all interested parties for full understanding and cooperation as their participation to share the burden is the only possible measure to normalize HMM.”
