12 Maret 2016

[120316.EN.SEA] Hyundai Merchant Marine Has Bank's Backing In Liquidity Crisis, Appeals For Time


HYUNDAI Merchant Marine (HMM) has the backing of its principal lender, the state-owned Korean Development Bank (KDB), as the company appeals for patience in its current liquidity crisis until its restructuring plans bears fruit.

Facing a liquidity crisis, Hyundai Merchant Marine CEO Paik Hoon Lee said the company had sold off many of its assets to raise bridging finance.

Of the restructuring plan, KDB said: "After thorough review, Hyundai Group's plan has been deemed viable and trustworthy, and capable of substantially helping HMM to recover its financial structure and achieve normalisation if well-implemented."

Said CEO Lee: "Once our restructuring is successfully completed, HMM will be transformed into a sound company."

HMM has made a deal to sell its bulk dedicated business for KRW120 billion (US$100 million)

Hyundai Group chairwoman Hyun Jeong-eun will also donate KRW30 billion (US$25 million) of her personal funds through a third-party allotment.

"We have decided to raise share capital by issuing six million shares (at KWR5,000 apiece) through a third-party allotment," Hyundai Merchant Marine said in a regulatory filing.

Mrs Hyun and her mother Kim Moon-hee will buy KWR30 billion in newly issued shares.

Also sold is Hyundai Securities and well as the settlement for charters and debts.

"Also the stake sales of Busan New Port Terminal and Hyundai Securities are progressing well. All plans are scheduled to be completed within the first half of the year at the latest," said the HMM statement.

"After all this was put in place, KDB closely reviewed our additional restructuring plan with the accounting firm Deloitte who had a common understanding of our efforts to execute the restructuring plan," said the HMM statement.

Said Mr Lee, the CEO: "We can expect KDB support as debt settlement once the restructuring plan is completed as we expect it to be very soon. Currently our restructuring plan is being executed as planned."

An industry insider said: "It seems like HMM's plan is well thought-out and feasible, and Hyundai Group's commitment is strong. Consequently, the main creditor bank and other creditors are supportive. Such assurance will help HMM to win the credibility of partners, investors, shipowners and the market at large."

Source : HKSG.

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