Hyundai Merchant Marine Co. (HMM), is resurrecting an asset-sale plan in an effort to stave off bankruptcy as it reels from a crisis in the shipping industry brought on by slowing global trade, says WSJ.
The Seoul-based company plans to seek another buyer for its majority stake in stock brokerage Hyundai Securities Co Ltd and other shipping facilities to raise cash and repay maturing debt.
Korea’s 21st largest family-controlled conglomerate, which is widely known for its now-defunct North Korea tourism project, has pledged to do everything it can to raise cash to bolster HMM’s deteriorating bottom line.
HMM’s talks to sell its entire 22.4 percent stake in the brokerage to Japan’s Orix Corp for about 647 billion won ($535.83 million) fell apart late last year, the spokesman said.
Hyundai Merchant has posted a net loss for four consecutive quarters through Sept. 30. It is struggling under a 7 trillion won ($5.8 billion) debt.
Shipping lines worldwide have been selling assets, cutting workers and considering consolidation to stem losses as years of slowing global trade and overcapacity eat into rates.
Source: Maritime Professional