Hyundai Merchant to raise 2.5 tln won in rights issue

SEOUL, June 7 (Yonhap) -- Hyundai Merchant Marine Co., South Korea's second-biggest container carrier, said Tuesday that it will raise more than 2.5 trillion won (US$2.1 billion) by issuing shares in its latest efforts to regain its financial health.

In a regulatory filing with the Financial Supervisory Service, Hyundai Merchant said that it will issue 236 million new shares at 10,700 won per share to pay maturing debts and secure operating capital.

The shipping line said it plans to list the shares on the main bourse on Aug. 5.

Shares in Hyundai Merchant closed up 12.5 percent at 18,450 won on Tuesday, outperforming the broader KOSPI's 1.30 percent gain.

Hyundai Merchant's creditors, led by state-run Korea Development Bank, agreed to swap 680 billion won of debt for the shipper's stocks in late May, as part of an effort to keep the shipping line afloat. Hyundai Merchant was about 5.2 trillion won in debt as of the end of March.

The company has been in talks with 22 shipowners to cut a deal that will set new rates on chartered ships this week. It paid 976 billion won in charter fees last year for 83 vessels leased.

Hyundai Merchant is seeking to lower rates to appease its creditors' demands for steep cuts in charter fees as the core condition for a debt revamp plan.

entropy@yna.co.kr
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