Hyundai Merchant Marine Denies Rumors

Thursday, May 17, 2001
Hyundai Merchant Marine, South Korea's largest shipping firm, denied on Thursday a local report it had begun a debt-rescheduling program led by creditor banks. "It is not true that the company began a debt-rescheduling program led by creditors and the government formed a debt team due to rising debts," the company said in a statement. The JoongAng Ilbo newspaper quoted an official at the FSS as saying that the new debt-rescheduling team was formed as some financial institutions were inclined to collect debts from the company after it revealed an increased debt-to-equity ratio in its March audit report. Hyundai Merchant said it was a profitable company with a profitable future. Hyundai Merchant said it had posted 457.8 billion won ($350 million) in operating profits last year on 5.2 trillion won in sales. The newspaper said Hyundai Merchant's debts had risen 46 percent to 6.7 trillion won as of end-March compared to 4.6 trillion won as of end-1999, driving its debt-to-equity ratio up to 980.1 percent, well over the government-mandated maximum of 200 percent. Hyundai said the 2.1 trillion won increase in debt was mostly due to the purchase of three liquefied natural gas (LNG) carriers for 954 billion won and 504.3 billion won of additional burden in foreign debts due to the weak won. "However, the LNG operation based upon a long-term contract with Korea Gas Corp is a profitable business, which will pay off later," it said. The company said it would have no problem repaying $2.8 billion in foreign debts in dollar terms even if the Korean won depreciated further as it expected $5.0 billion in sales this year, it said. - (Reuters)

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter May 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

PALFINGER Plans to Acquire Harding Group

The PALFINGER Group announced it intends to acquire 100 percent of the shares in Herkules Harding Holding AS and thus, the globally operating Harding Group, suppliers

Winners of Ferry Design Contest Selected

Winners of International Student Design Competition for a Safe Affordable Ferry to be revealed at the Ferry Safety and Technology Conference   Dr. Roberta Weisbrod,

Maritime Consolidation: Palfinger Aims to Acquire Harding

As maritime markets continue to struggle, merger and acquisition activity should heat up. Today, Austria's Palfinger Group announced that it intends to acquire

Finance

DP World Launches $1.2 bln Sukuk Issue to Cover Tender

Dubai-based ports operator DP World launched a seven-year $1.2 billion sukuk issue on Tuesday, a document from lead managers showed.   The issue, structured to

Baltic Index Falls on Weaker Demand

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Tuesday as demand for larger vessel segments declined.

China Shipbuilding Plans Major Restructuring

State-owned China Shipbuilding Industry Corp (CSIC) is undertaking a major restructuring as it grapples with an industry downturn, and it will be the largest restructuring

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Offshore Oil Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0956 sec (10 req/sec)