South Korean shipping company Hyundai Merchant Marine has established an asset sale plan, through its brokerage affiliate Hyundai Securities, in a bid to ward off bankruptcy, as a result of slowing global trade that is impacting the shipping industry, according to the Wall Street Journal.
Global shipping companies have been hit by the global demand slump, which has led to companies selling vessels at bargain prices in order to stay afloat.
An unnamed Spokesman for state-run Korea Development Bank said: “Without lowering the lease rates significantly, the company will only lose money by running the ships. It may not be easy for us to provide a fresh aid package under the current situation. ”The dry bulk market is experiencing significant turbulence at present, with weakening demand from China causing ripples throughout the industry.
Hyundai Merchant Marine recently announced that it will be selling its bulk shipping business for around US$500 million in order to stay afloat in a financially unstable market.