HYUNDAI CONSIDERS FINANCIAL RESTRUCTURING PLAN
Hyundai Merchant Marine, the heavily indebted Korean shipping group, is considering a draft financial restructuring plan submitted by Credit Suisse First Boston.
As part of the plan, Hyundai Merchant Marine will assess the possibility of selling container terminals and vessels, a spokesman for the company said. Another option under review is the sale by Hyundai Merchant Marine of stock in other Hyundai group companies that it holds.
Company auditors, in their report on the annual accounts of Hyundai published in March, drew attention to the continuing impact of the 1997 Asian financial crisis on Korean firms.
“The Korean economy is currently experiencing additional difficulties, particularly in the areas of restructuring private enterprises and reforming the banking industry,” the auditors said. “The Korean government continues to apply pressure to Korean companies to restructure into more efficient and profitable firms.”
At the end of last year, Hyundai Merchant Marine had long-term liabilities of $2.9 billion, against shareholders’ equity of about $538 million.
Meanwhile, Hyundai Merchant Marine has not yet appointed a successor to Kim Choong-Shik, the former president and chief executive officer, who resigned last month.