Asia/Pacific News
Seoul Supports HMM Restructuring, as Separate Reports Suggest Finances Worse than Previously Stated
Kim Young-suk, the Minister of Oceans and Fisheries (MOF), has publicly expressed support for Hyundai Merchant Marine (HMM)'s restructuring plan, according to a press release emailed Thursday.
"(HMM's) Restructuring plan has been fully drawn up and is approved by the Financial Services Commission and its major creditor bank," Minister Kim was quoted as saying last Friday.
"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."
Separately, reports earlier this week suggest the finances of the troubled Korean player are worse then originally thought.
According to a report by IHS Fairplay, following an external auditor's check of its accounts, for full year 2015 HMM is said to have suffered losses of KRW 648.76 billion ($557 million), a larger loss than the unaudited figure of KRW 600.1 billion ($498 million) announced in February.
Total liabilities are said to be KRW 5.66 trillion (US $4.8 billion), slightly higher than the unaudited KRW 5.6 trillion (US $4.7 billion) reported last month.
Earlier this month Ship & Bunker reported that industry analysts at Drewry thought a tie-up between HMM and Hanjin would ensure the survival of the troubled company.
