Hyundai Merchant has this week to persuade vessel owners to adjust charter fees
South Korea's Hyundai Merchant Marine Co. and its main creditor Korea Development Bank this week will engage in last-minute talks with foreign ship owners to bring down charter fees, a requirement for the shipper to gain debt relief from non-banking creditors and avoid heading to court receivership.
Hyundai Merchant Marine has until this week to finalize talks with the ship leasers to rationalize charter rates in order to get new aid and debt relief from creditors. Four out of 22 vessel owners reportedly are disagreeing to new terms.
The Korean government, state-run KDB, and law firms, as well as the company will join to persuade the ship-owners by pitching that their cooperation is essential to prevent the shipper from going under court management.
Hyundai Merchant Marine also has failed to get on international shipping alliance groups because of the risk of its going under.