Korean Government to Fund HMM Vessels
South Korean shipping unit will purchase Hyundai Merchant Marine (HMM) vessels for USD 515 million and lease them back to the container carrier at favorable charter rates as part of a state aid program. Korea Shipping Co., a new entity servicing troubled shippers will act as a shipping bank to buy vessels from shippers to lease them back to help them out of financial troubles, was launched on Tuesday on initial paid-in capital of 1 trillion won. HMM will become the first beneficiary of the Korean government rescue schemes for shipping through the Korea Shipping Co.
South Korean Court to Liquidate Hanjin Shipping
The Seoul Central District Court Thursday decided to end the bankruptcy protection of Hanjin Shipping Co. Ltd (Hanjin Shipping), leaving the company to succumb to a declaration of bankruptcy later this month, Yonhap reported. Hanjin, once the world's seventh- or eighth-largest container shipper, filed for court receivership in late August 2016 as its creditors, led by the state-run Korea Development Bank (KDB), said they would not provide additional financial support to Hanjin starting from September 4.
Korea Bank Puts 10 Hanjin Vessels Up for Sale
Korea Development Bank, the main creditor of the dissolved Hanjin Shipping Co. and state-owned entity, has put 10 Hanjin vessels up for sale in order to source back elements of its extended loans, reports Yonhap. According to the sources, potential buyers are required to submit their bids for the ships — two container ships and eight bulk carriers — by Feb. 21. Previously a South Korean court agreed to formally end Hanjin Shipping Co Ltd’s court receivership process after a two week appeal period, ending the business.
SocGen Arranges Financing for Oman Shipping's Tanker Play
Oman Shipping Company, wholly owned by the government of Oman, raised $227 million in debt to back the purchase of 10 tankers, Societe Generale said on Thursday. Societe Generale was the sole arranger and sole underwriter of the transaction, which comprised a combination of commercial debt and export credit agency financing. The commercial portion of the debt package also involved Credit Agricole Corporate & Investment Bank, the Korea Development Bank and ABN Amro. Reporting by Davide Barbuscia
Daewoo Shipbuilding Seeking Stake Sale in Non-Core Assets
South Korea's Daewoo Shipbuilding & Marine Engineering Co (DSME) is accelerating its move to sell all non-core assets o beef up its financial status amid concerns over a sharp fall in new orders, Yonhap reported quoting industry sources. DSME has recently signed a memorandum of understanding (MoU) to sell its building in downtown Seoul, a deal valued at US$30 million, the report said. The shipbuilder also put one of its affiliates up for sale, whose price tag is set at some 18 billion won, with the two cases of asset sales expected to be completed by April.
Daewoo Shipbuilding to Get Fresh $2.6 Bln Bailout
South Korean state banks are preparing a fresh $2.6 billion bailout for floundering Daewoo Shipbuilding & Marine Engineering Co Ltd, which has built up huge losses from offshore projects and risks missing debt repayments. Daewoo, Hyundai Heavy Industries and Samsung Heavy Industries are South Korea's top shipbuilders - a massive economic force and a source of national pride. But they slipped into the red in 2015 amid a commodities downturn and bleak trade volumes, prompting cost cuts and asset sales. Of the three, Daewoo's situation is the most difficult.
DSME's Bailout Plan Cleared by Pension Fund
South Korea’s National Pension Service (NPS) agreed to a restructuring of bonds issued by Daewoo Shipbuilding & Marine Engineering (DSME). Reuters reported that this move is expected to help the world’s largest shipbuilder tide over a financial crisis. NPS stated that accepting the debt restructuring will be more advantageous to improve the fund's returns. The finance crunch hit DSME will likely get more time to make payments on bonds that are due this month. NPS is the biggest holder of the debt.
Daewoo Shipbuilding Bondholders Okay Bailout Plan
Debt-to-equity swap plan is condition of $2.6 bln bailout. South Korea's Daewoo Shipbuilding & Marine Engineering Co Ltd on Monday won near unanimous approval for a debt-to-equity swap plan in the first three of five bondholder meetings, as the world's largest shipbuilder battles to stay afloat. The votes were held hours after Daewoo's biggest bondholder, the National Pension Service (NPS), said it had agreed to the proposal. That move made it likely other bondholders would follow suit, creditor bank officials said, allowing the shipbuilder to meet conditions of a $2.6 billion bank bailout.
Daewoo Shipbuilding unlocks $2.6 bln Bailout
Bondholders at final meetings agree to debt-to-equity swap; shipbuilder needs about $400 mln in operating funds by April-end. South Korea's Daewoo Shipbuilding & Marine Engineering Co Ltd has won near unanimous agreement from bondholders to swap their debt for equity, meeting a condition that unlocks a $2.6 billion bank bailout for the world's biggest shipbuilder. Daewoo won approval from over 96 percent of bondholders at two meetings on Tuesday and three on Monday, with attendance exceeding 78 percent.
DSME Deal Non-starter
The creditors of Daewoo Shipbuilding & Marine Engineering (DSME) still remain undecided over afor the shipyard's latest deal, further complicating troubles for one of the country's major shipyards, Yonhap reported. DSME clinched a US$250 million deal to build three very large crude carriers (VLCCs) on April 4. Under the deal with Maran Tankers Management, a unit of Greece's largest shipper Angelicoussis Shipping Group, Daewoo Shipbuilding will deliver the 318,000-ton VLCCs by 2018.
Hyundai Merchant Marine Seeks USD 8.9 bln from KDB
Hyundai Merchant Marine (HMM) requested the Korea Development Bank (KDB) to support with a total of 9.9 trillion won (US$8.9 billion) in funds until 2022 to grow into the 8th largest global shipping company in the future, Business Korea reported. HMM had asked consulting firm AT Kearney to estimate how much support funds for HMM would be needed. AT Kearney calculated that a total of 9.9 trillion won will be needed, including 5.6 trillion won (US$5.0 billion) for large container ships…
Former Chief of Daewoo Shipbuilding Gets 6 Years in Jail
Former Daewoo Shipbuilding & Marine Engineering (DSME) boss Nam Sang-tae sentenced to six years in prison by Korean court for embezzlement and bribery, Yonhap reported. The report said that the Seoul Central District Court handed down the guilty verdict to Nam Sang-tae, 67, convicting him of accounting fraud, embezzlement, breach of duty and bribery. The court ordered him to forfeit 880 million won (US$806,000). Prosecutors have demanded an eight-year prison term. The court said…
STX Corp to Be Sold to Chinese Firm
AFC Korea, a subsidiary of Chinese private equity fund AFC, has been selected as the preferred bidder for cash-strapped STX Corp, according to a Business Korea report. AFC Korea has reportedly offered a price tag above 70 billion won (US$65.62 billion) for an 86.28 percent stake owned by STX creditors. STX creditors include Korea Development Bank (KDB), which holds a 39.59 percent stake, and NongHyup, which has 10.07 percent. AFC beat three other potential bidders including Pan Ocean, which was once a part of STX, and textile manufacturer Global SAE-A.
South Korea Restuctures Mid-Sized Shipbuilders
The South Korean government decided to restructure two financially-troubled mid-sized shipbuilders, said a report in Business Korea. While filing for court receivership for the debt-ridden Sungdong Shipbuilding, the government has decided to save STX Offshore and Shipbuilding Co. on condition of slashing 75 percent of its production workforce. The two shipbuilders are heavily indebted to Korea's two state-run banks, as they have struggled with snowballing losses amid unfavorable oil prices and the worldwide industry downturn.
DSME Creditors Mull Equity Swap
Creditors of Daewoo Shipbuilding & Marine Engineering (DSME) are set to announce a debt-for-equity swap and other measures, worth 3 trillion won (US$2.62 billion), reports Yonhap. Korea Development Bank (KDB), a main creditor of DSME, said that the bank will accept debt-to-equity swaps worth at least 1.6 trillion won ($1.4 billion) to keep the company operating with sufficient financial liquidity. KDB along with the other creditor Export-Import Bank of Korea (EXIM Bank) would provide a combined 4.2 trillion won worth of financial aid to Daewoo Shipbuilding…
HMM Acquires Hanjin's 11 Ships
South Korea's Hyundai Merchant Marine Co. (HMM) will take over 11 ships returned by bankrupt Hanjin Shipping Co. to the Korea Development Bank (KDB), reports Business Korea. Haeyoung Maritime Services Co., a subsidiary of HMM which provides ship management and maintenance services, has managed one container and three bulk carriers returned by Hanjin Shipping to the KDB at the end of last month. These are Hanjin Shipping’s vessels on bareboat charter hire purchase (BBCHP). The…
STX Shipbuilding Stages Strike
The trade union workers of South Korea's STX Offshore & Shipbuilding Co. said Sunday they will stage a strike starting this week to protest the company's self-rescue plan, reports Yonhap. According to Korean media reports, the union would organize the strike action this week to express its disagreement with the company's planned restructuring program as it does not guarantee workers’ jobs. Starting today (Monday) 8:00 a.m., the union said 700 workers will walk out and called on the company to scrap the planned layoff of workers.
Korea's Labor Unions Asked to Cooperate In Daewoo Revamp
Creditors of embattled Daewoo Shipbuilding & Marine Engineering Co. have demanded that the shipbuilder's labor union accept the company's large-scale restructuring scheme in return for helping the shipyard stay afloat, says Yonhap. The creditors, led by the state-run Korea Development Bank, have asked Daewoo Shipbuilding's labor union to accept the company's restructuring plan, which includes job cuts, in exchange for the funding. It is set to announce a debt-for-equity swap worth 3.2 trillion won (US$2.83 billion) for Daewoo Shipbuilding this week…
S.Korea State Banks to Inject $2.4 Bln into Daewoo Shipbuilding
Struggling Daewoo Shipbuilding & Marine Engineering Co Ltd's will receive an injection of 2.8 trillion won ($2.4 billion) from two state-run creditor banks to save it from being delisted, one of the lenders said. Daewoo's main creditor, Korea Development Bank (KDB), said in a statement it will cancel about 60 million of its Daewoo shares, and reduce the remaining stake by a ratio of ten shares to one to cut the ship builder's debt-to-asset ratio. It will then inject 1.8 trillion won ($1.6 billion) in Daewoo in a debt-for-equity swap. The Export-Import Bank of Korea will buy 1 trillion won in Daewoo-issued perpetual bonds to shore up Daewoo's finances, KDB added. ($1 = 1,149.3900 won) (Reporting by Joyce Lee; Editing by Edwina Gibbs)
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. 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.
Maersk, Hyundai Merchant Marine alliance talks in doubt
Hyundai Merchant Marine says still in talks to join 2M; joining an alliance was precondition for HMM debt relief. Doubts about the future of Hyundai Merchant Marine Co Ltd surfaced on Friday after Denmark's Maersk Line said the South Korean shipping firm was no longer being considered for the 2M vessel-sharing alliance. Joining an alliance with major shipping firms was one of the conditions of a debt restructuring deal between heavily indebted Hyundai Merchant Marine and its creditors in May so any breakdown in talks could raise serious questions about the future of South Korea's largest shipping firm. Maersk Line, part of A.P. Moller-Maersk, said it was still in talks with Hyundai Merchant Marine but they were no longer about it becoming an operating partner in the alliance.
Hyundai Merchant Marine Ties Up with 2M Alliance
Heavily indebted South Korean shipper Hyundai Merchant Marine Co Ltd (HMM) said on Sunday it has agreed with the 2M shipping alliance to form a cooperative relationship that falls short of full-fledged membership. Joining an alliance with major shipping firms was one of the conditions of a debt restructuring deal between Hyundai Merchant Marine and its creditors in May, and the company said on Sunday that the tie-up with 2M met that criteria. Its main creditor, the state-backed Korea Development Bank…
Financial Close for Bahrain LNG Terminal
Bahrain LNG, the developer of the Gulf state’s receiving and regasification terminal for liquefied natural gas (LNG), has closed a $741 million syndicated loan for the platform’s construction. The private-public partnership is being developed to supplement local gas production in Bahrain and ensure capacity to meet peak seasonal gas demand and industrial growth. Financing a project of this size and complexity is a landmark in the regional financial markets. According to the company…