Friday , 15 December 2017
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HMM’s creditors agree debt-for-equity swap

Hyundai Merchant Marine’s creditors have agreed to swap 680bn (US$573m) won of debt for equity, according to lead creditor Korea Development Bank.

At the end of the first quarter of 2016, the company had debts of 5,2tn won (US$4.28bn)so this move will take it to around 4.52tn won (US$3.8bn), a 13% decrease.

In return, creditors will receive a stake in the business although the size of the stake has not yet been agreed.

One of the conditions of the agreement is that the company joins an alliance involving major shipping firms, despite recently being unexpectedly left out of THE alliance.