Creditors of South Korean carrier Hyundai Merchant Marine Co Ltd have actually accepted a 680 billion won ($ 570.27 million) debt-for-equity swap, top lender bank Korea Development Bank stated on Tuesday.
Container lines, which transfer everything from bananas to iPhones, are having problem with the confluence of an excess of ships, a failing worldwide economy and weaker consumer need.
Hyundai Merchant Marine had debts of around 5.2 trillion Korean won since the quarter ending in March, as per a company filing. Squeezed by exactly what is extensively considered the worst slump ever for the industry, the Korean shipper is attempting to work out lower charter charges from shipowners.
The contract is contingent on conditions having Hyundai Merchant Marine signing up with an alliance involving significant shipping companies. A Korea Development Bank authorities stated the size of stake the lenders will collectively wind up with in Hyundai is not yet set. ($ 1 = 1,181 won).