South Korea to Consider Merging HMM and Hanjin Shipping

first_imgzoom South Korean shipping company Hyundai Merchant Marine (HMM) and its compatriot Hanjin Shipping could be merged if they succeed in normalizing their management, The Korea Times cited Financial Services Commission (FSC) Chairman Yim Jong-yong.The South Korea’s government said that if the companies manage to achieve the goal, it would consider a number of possibilities, one of which would be merging the cash-strapped firms.The potential merger was mentioned a couple of times before, as last November the government formed a multi-ministry consultative body for restructuring the shippers.The announcement comes a week after HMM reached a deal with containership owners on 20 percent charter rate cuts and with bulk carrier owners for a 25 percent charter rate reductions. The company initially sought a 27 percent rate decrease.The cuts are expected to come into force over the next three and a half years, according to HMM.HMM’s creditor group agreed on the company’s debt restructuring proposal on condition that the shipping firm successfully concludes its negotiations with bond holders and shipowners.HMM has already gained bond holders’ approval for its debt restructuring proposal, as the company faces a USD 4.48 billion wall of debt.Additionally, the normalization of the company’s business would pave the way for the struggling firm to join the new global shipping alliance.Hanjin Shipping also initiated discussions with 22 shipowners on charter rates and plans to meet with bond holders to restructure its debt.Hanjin is required to make its self-rescue efforts to secure liquidity as HMM did.World Maritime News Stafflast_img read more

Strong Iraqi exports reported under UNs oilforfood programme

According to the weekly update from the UN Office of the Iraq Programme (OIP), the exports, which averaged 2.4 million barrels per day, generated 404 million euros or $356 million. During the current phase of the programme, which runs through 30 November, Iraqi oil exports have generated $1.1 billion. Under the terms of the plan, Baghdad is allowed to use a portion of its petroleum revenues – 72 per cent – to purchase humanitarian relief.In a related development, OIP reported that the Security Council sanctions committee released from hold 78 contracts worth $265 million, with the total value of contracts currently on hold dropping to some $3.4 billion, from $3.5 billion the week before. “In all, 1,418 contracts are on hold, of which 969 worth over $2.9 billion are for humanitarian supplies and 449 contracts worth $434 million for oil industry spare parts and equipment,” OIP said. read more