Thursday 14th July 2016
HMM Completes All of the Steps of the Restructuring Process and Debt-for-Equity Swap
Dear Valued Customers,
Following agreements with bond-holders to adjust debt and ship owners to adjust charter-hire, Hyundai Merchant Marine (HMM) has announced today that the company signed an MOU with the 2M Vessel Sharing Agreement (2M VSA) for providing joint service to begin from April 2017 upon finalising negotiations and approval procedures in each country.
The MOU signed between HMM and the 2M is a binding agreement in regards to HMM’s entry to the 2M VSA.
The 2M is a leading container shipping alliance comprised of the world’s largest container carriers, Maersk Line (ML) and Mediterranean Shipping Company (MSC).
By accessing 2M VSA network, HMM will be able to strengthen its service offering and achieve improved cost competitiveness. The 2M carriers will benefit from a reinforced service competency in Asia and improved network cover in the trans-pacific area.
With today´s announcement, HMM has successfully completed all conditions set out in the voluntary agreement with creditors from March 2016 and in accordance with the completion of such preconditions, the planned debt-for-equity swap by creditors will be executed as planned.
Upon completion of said debt-for-equity swap, the financial structure of HMM will be significantly improved and puts HMM in sound position to meet future challenges.
A HMM spokesperson said, “Based on the company’s sound financial structure, HMM will put its utmost efforts into improving our service offering to clients and to continue increasing operational competency in the second half of this year to continue improving profitability of our company”.
Hyundai Merchant Marine Co., Ltd