Hyundai Merchant Marine fights to avoid bankruptcy

Shareholders of Hyundai Group’s shipping segment Hyundai Merchant Marine (HMM) have agreed to a capital reduction aiming to keep it listed on the Korea stock exchange as the company’s creditors rejected its offer to reschedule debt, pushing the company closer to bankruptcy.

Despite the rejection, according to a statement by the company, HMM and its main creditor, the state-owned Korea Development Bank (KDB), planned to enter into a voluntary agreement (VA) on March 29 following a consultation with other creditor banks on March 22.

In the meantime, the shipping line’s shareholders approved HMM’s proposal, announced earlier this month, to consolidate shares on a 1-for-7 basis.