Hyundai Merchant Marine (HMM) has announced that it will be selling its stake in Busan New Port for more than US$69 million in order to pay off debts of around $334 million, with a further $527 million due to be paid in 2017, according to the Journal of Commerce.
PSA has been touted as the likely buyer of HMM’s Busan stake.
Leading port and terminal operator PSA recently expressed an interest in a stake in Busan Port, with a follow up signing of a Memorandum of Understanding between PSA and HMM.
The action to lay off assets is further evidence of carriers struggling to stay afloat in an ever volatile marketplace; a marketplace Moore Stephens recently stated would remain volatile throughout 2016.
The possibility for HMM’s recovery could come to fruition as a result of a potential pairing with Hanjin Shipping, which is believed to be crucial for the carrier’s survival, and would echo the merger of Chinese state liners Cosco and CSCL.
HMM’s most recent financial plan involves a self-rescue scheme in collaboration with the South Korean Development Bank, which it hopes will restore its liquidity issues.