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

People & Company News

Ri'chard Joins Holland America Line as Director

Holland America Line has appointed Denella Ri’chard to the position of director, trade communication and engagement. In this newly created role she is responsible

SunEdison Restrained from 'Unusual' Asset Transfers

Solar company SunEdison Inc said a U.S. court has restrained the company from making any unusual asset transfers until a hearing in a lawsuit brought on by investors

Maersk to Scrap Ships at India's Alang Beaches, NGO Dismayed

Maersk Line said on Friday it had chosen four shipbreaking yards along India's Alang beaches to handle an increase in vessels that need to be scrapped, to the dismay

Finance

Brazil's CEEE to sell stakes in Wind Farms, Dams

Brazil's Companhia Estadual de Energia Elétrica (CEEE), a power utility controlled by the state of Rio Grande do Sul, will sell assets including stakes in wind farms,

DP World Bolsters Investment in India

DP World Pvt. Ltd, the world’s fourth biggest container port operator majority owned by the Dubai government, has plans to invest over $1 billion in India for augmenting its port-related operations.

SunEdison Restrained from 'Unusual' Asset Transfers

Solar company SunEdison Inc said a U.S. court has restrained the company from making any unusual asset transfers until a hearing in a lawsuit brought on by investors

 
 
Maritime Contracts Maritime Security Maritime Standards Offshore Oil Pod Propulsion Port Authority Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction
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: 0.0908 sec (11 req/sec)