Giants are Falling

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JK
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Giants are Falling

Postby JK » Mon Feb 08, 2016 6:00 am

Reading the marine news these days is pretty grim with ships and rigs being laid up and companies reeling.
Hyunadai Merchant Marine has a debt to equity ratio of 700% with debts over $5 billion. They have dumped their dry bulk division .

Hyundai Merchant Marine (HMM) has seen its credit ratings take more of a hammering despite the sell-off on Friday of its dry bulk division. Local agency Korea Ratings downgraded the under pressure line to B- in its latest report.

HMM, which has laboured under debt-to-equity ratios in excess of 700% in recent months, signed a contract on Friday to sell its dry bulk division to H-Line Shipping, a firm controlled by Korean private equity firm Hahn & Co in a deal reportedly worth KRW120bn ($100m) with H-Line also assuming debts of around KRW420bn.

HMM’s 12 bulkers help make Hahn a growing force in dry bulk. In 2013, the private equity firm bought out Hanjin Shipping’s dry bulk division too.


HMM, with debts of more than $5bn, has pressing bonds to repay later this year and further sell offs, including its terminal in Pusan are likely. Singapore terminal operator PSA has been linked with the terminal buy, but officials for the port company have declined to confirm the deal.

HMM revealed on Friday a net loss of KRW443.4bn for last year with local analysts suggesting the line is on course to remain in the red for 2016.

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JK
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Re: Giants are Falling

Postby JK » Mon Feb 22, 2016 5:01 am

Trenton has been around for a long time in some form or other.
30-50 years ago they built all the shafting for the major ships built.

Struggling South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering (DSME) has closed its metal fabrication facility in Canada as part of its ongoing restructuring exercise.
The facility, which opened in Nova Scotia in 2011, and mainly focused on metal fabrication for wind turbines, is one of a number of overseas holdings DSME is willing to offload to keep creditors at bay.
Nova Scotia, which has a 49% in DSME Trenton, will file for receivership proceedings, while also looking for investors to take over the loss making entity.
Up next on the chopping block for the slimlining Korean shipbuilder is likely to be Romania’s largest shipyard, DSME Mangalia. The government in Bucharest is likely to come under pressure to find a rescue package for that yard and its workers.

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JK
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Re: Giants are Falling

Postby JK » Mon Mar 21, 2016 4:55 am

Hyundai Motor has steered clear of being drawn into any rescue package for ailing shipping line, Hyundai Merchant Marine (HMM).

Hyundai Glovis, a logistics unit of the car manufacturer, had been tapped to take over HMM, which is weighed down by more than $5bn in debts, but Hyundai Motor stated publically today to Korean newswire Yonhap it will not invest in HMM.

HMM’s parent, Hyundai Group, is run by the widow of the late brother of Hyundai Motor’s chairman Chung Mong-koo.


On Friday, HMM shareholders approved a capital reduction aimed at preventing it from being delisted from the local stock market.

Splash247


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