The approval lends the troubled South Korean shipping company much needed time to stabilise its financial situation and raise its liquidity.
HMM has received approval from its creditors’ council to extend its debt maturity from March 29 to June 29, 2016.
Hyundai Merchant Marine (HMM) has received approval from its creditors’ council, which is headed by the Korea Development Bank (KDB), for the extension of its debt maturity from March 29 to June 29, 2016 - lending the troubled company much needed time to stabilise its financial situation and raise its liquidity.
In a stock exchange filing, KDB said that the voluntary agreement stipulates that all interested parties share the burden of the decision to extend the credit period.
As Ship & Bunker has previously reported, while KDB had agreed to extend principal and interest payments by three months, the company still needed to secure approval from HMM's bondholders for the maturity extension,
KDB said that the agreement stipulates that all interested parties share the burden of the decision to extend the credit period
With private bond-holders having now agreed to extend the maturity of the debt due in April and July this year, HMM's debt repayments have been reduced to KRW 120 billion ($104 million) due in April, and KRW 240 billion ($208 million) due in July, although HMM says it will not have sufficient liquidity to make the April payments.
Separately, Alphaliner reports that HMM has reached agreement with an unspecified shipowner to reduce its charter rates, but specific details of the deal have not yet been revealed.
Skangas duel fuel LNG carrier Coral Energy (image credit/Skangas)
Liquified natural gas (LNG) bunker tanker Coralius has made its first trip loading and delivering LNG to and from Norwegian ports, according to trade press reports.
The 5,800 cubic meter capacity tanker, which is owned by Norwegian gas company Skangas, was delivered to the company in June. Skangas also operates LNG carrier Coral Energy.
OPEC Cutback Extension to be Discussed in November, But Developments Could Render Any Deal Meaningless
Analysts say everything from Saudi exploration to rising tensions with North Korea could radically alter the dynamics of the international market. File Image / Pixabay
Ever since the Organization of the Petroleum Exporting Countries (OPEC) extended the duration of its production cuts earlier this year to March of 2018, speculation has been rampant that the meager cutback volume coupled with the large number of members