Hyundai Merchant Marine Bondholders Approve Debt Plan

SEOUL, June 1 (Reuters) – A majority of Hyundai Merchant Marine Co Ltd (HMM) bondholders have approved a debt-for-equity swap plan, South Korea’s second-largest shipper said on Wednesday, paving the way for restructuring of the heavily indebted firm’s finances.

HMM, which had debts about 5.2 trillion won ($4.36 billion)at end-March, has about 804.3 billion won in publicly traded bonds outstanding, a spokesman said.

The debt restructuring plan includes a debt-for-equity swap for over 50 percent of the applicable bonds, while the remaining amount is to be payable in three-year installments, after a two-year grace period.

Last week, HMM’s creditor banks agreed to a 680 billion won debt-for-equity swap. ($1 = 1,192.1300 won) (Reporting by Joyce Lee; Editing by Kenneth Maxwell)

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