Hyundai Merchant Marine Co., South Korea’s second-largest container carrier, would be joining the world’s largest shipping alliance 2M, placing the shipper on the path for creditors’ rescue program and business normalization.
The state-run Korea Development Bank, the main creditor of the cargo carrier, said on Thursday that Hyundai Merchant Marine signed a memorandum of understanding with 2M alliance to share ships and networks. The shipping alliance consists of world’s two largest container carriers Maersk Line, a shipping unit under A.P. Moller-Maersk Group, and Mediterranean Shipping Company S.A.
The MOU is a binding agreement, and the Korean cargo carrier will start operating within the 2M shipping network starting April next year, said the creditor bank.
By becoming a member of a global shipping alliance, Hyundai Merchant Marine now has fulfilled all requirements to receive creditors’ aid and guidance for turnaround instead of going to court receivership. Creditors will offer debt-equity swap, roll over maturity, and re-adjust interest rates on loans. On Friday, the shipper will convene a temporary shareholder meeting and vote on capital reduction and debt-to-equity swap program.
The Original Posted By Yoon Jin-ho/Maeil Business News