HMM Sells Ships for Funding


South Korea carrier line Hyundai Merchant Marine has signed a memorandum of understanding with a state-run shipbuilding financing firm to sell part of its fleet to receive fresh funding and improve its financial status, according to Yonhap.

Under the deal, Hyundai Merchant will sell 10 container ships at market value of US$131 million to Korea Shipping against a book value of $739 million, which will be financed with sales of bonds and stocks to the financing firm.

The container ships may be leased back to HMM as part of the agreement.

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HMM has reported that Korea Shipping will buy around $87 million worth of stocks to be sold by HMM and $522 million worth of bonds convertible into the carrier's stocks.

The carrier is also planning to place orders for five container vessels and two or three oil tankers later this year with the state-backed financing program.

Hyundai Merchant Marine recently made an agreement with Hanjin Pacific Corporation (HPC) to acquire its 100% stake in three terminals for US$13.15 million.

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