The PR firm working for Hyundai Merchant Marine (HMM) has contacted Splash to report that the South Korean minister of oceans and fisheries has commended and supported the beleaguered line’s restructuring efforts.
HMM is making drastic cuts, weighed down with debts of more than $5bn and urgent repayments looming.
Speaking six days ago, Kim Young-suk is reported as saying: “HMM’s restructuring plan has been fully drawn up and is approved by the Financial Services Commission and its major creditor bank. Full support programs from repayment extension to debt-equity swap are already prepared to be launched upon the accomplishment of the restructuring plan, which includes charter payment reduction, paid-in capital increase, debt-equity swap, and the sale of Hyundai Pusan New-port Terminal. The support for HMM will be executed procedurally once all those preceding plans get implemented step by step. At the moment, the support plan is under its way in accordance with such procedures.”
HMM reported a loss of KRW627bn ($524.9m) last year, a sharp turnaround from the profit of KRW21.8bn achievec in 2014.
The minister added, “We sincerely hope that the support for HMM works out well, and are also promoting how important this is in terms of industrial policy.”