Korea Development Bank unlikely to sell finance-troubled container shipping company Hyundai Merchant Marine to foreign buyer. The bank, which is the largest creditor of the highly indebted company, is working on restructuring program for stabilization of the carrier and improve its finance health. The creditors hold 40% share in Hyundai Merchant Marine, from which 14% are owned by Korea Development Bank. Hyundai Merchant Marine started restructuring in July 2016, suffering from large debt, decreasing liquidity and low cash flows. The creditors gained control in Hyundai Merchant Marine in June, suffering from serious indebtedness due to delay of Asian economy, overcapacity on the container shipping market and record low freight rates.
“We are working over the restructuring of the company, which could help the state-run bank to improve its financial health but selling the firm to foreign buyer needs a cautious approach”, said Korea Development Bank Chairman, Lee Dong-geol. “We need to see a bigger picture like fostering Hyundai Merchant Marine into the nation’s flagship shipper”, added he
The announcement comes a few days after rumouring about possible acquisition of Hyundai Merchant Marine and bankrupted Hanjin Shipping by Maersk Line.
Hyundai Merchant Marine is South Korean integrated logistics and containerized freight transport company, with more than 50 sea routes, over 100 ports of call and operating about 138 vessels. Hyundai Merchant Marine is the world’s 15th largest container line in terms of vessel capacity and together with Hanjin Shipping, moves almost all of South Korean exports.