Hyundai Denies 2M Partnership Failure
Hyundai Merchant Marine (HMM) has denied reports that it failed to join the global shipping alliance 2M that the company has sought for months as part of its normalization plan.
According to Yonhap, "We are still in negotiations (with 2M) to iron out differences," said an official at Hyundai Merchant. "Our plan to complete the partnership talks by this month has not changed."
Since May, Hyundai Merchant has been seeking to become a member of 2M, the world's largest shipping alliance, one of the prerequisites set by its creditors to avert court receivership, says Korea Herald.
This was part of the conditions requested by the firm’s creditors earlier this year to normalize its business. The Korea Development Bank and other creditors promised debt-to equity swap if the shipper meets all the conditions. This included changing the charter cost, rescheduling the debt rate and joining the 2M Alliance from April next year.
In July, Hyundai said it had signed a memorandum of understanding with the 2M Alliance for joint operation and that it had completed all the conditions that the alliance requested.