July 26 - According to reports in the international media, Hyundai Merchant Marine (HMM) has signed an agreement with its creditors to commence its business normalisation plans.
This follows the signing of a memorandum of understanding between HMM and the 2M vessel sharing agreement, which will see the South Korean shipping line join the alliance from April 2017.
Membership of such an alliance was the final condition in the company's debt restructuring, after HMM satisfied its main creditor - Korean Development Bank - that it had achieved its charter hire cost reduction target.
HMM confirmed that the signing of the 2M deal means it has successfully completed all conditions set out in its voluntary agreement with creditors.
In accordance with the completion of such preconditions, the planned debt-for-equity swap by creditors will be executed as planned, added HMM in a statement.
Upon completion of the debt-for-equity swap, the shipping line claims that the financial structure of the company will be significantly improved and will put it in a "sound position to meet future challenges".
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