Hyundai Motor will not ride to HMM’s rescue

Hyundai Motor will not ride to HMM’s rescue

Hyundai Motor has steered clear of being drawn into any rescue package for ailing shipping line, Hyundai Merchant Marine (HMM).

Hyundai Glovis, a logistics unit of the car manufacturer, had been tapped to take over HMM, which is weighed down by more than $5bn in debts, but Hyundai Motor stated publically today to Korean newswire Yonhap it will not invest in HMM.

HMM’s parent, Hyundai Group, is run by the widow of the late brother of Hyundai Motor’s chairman Chung Mong-koo.

On Friday, HMM shareholders approved a capital reduction aimed at preventing it from being delisted from the local stock market.

 

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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