News / Troubled HMM wants cheaper charter hire, but its containerships face arrest if payments are withheld

18/02/2016

Owners of containerships chartered to troubled South Korean carrier Hyundai Merchant Marine are said to be “watching closely” after the carrier threatened to seek court protection unless time-charter payments were “significantly reduced”.

A letter, dated 1 February and signed by HMM chief executive Paik Hoon Lee, seen by a shipbroker source, says: “It is critical to understand that HMM’s financial difficulties cannot be solved by dealing with its financial liabilities alone. Unless time-charter payments are significantly reduced as well, the company cannot survive.”

It also said: ...

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John Roberts
February 18, 2016 at 5:12 pm
Very interesting article. I guess HMM customers will now be looking elsewhere if there is a risk of their cargo being stuck on an arrested ship.

And if you fancy making a few $$$ quickly, start shorting Danaos stock.

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- Ale Pasetti
  February 18, 2016 at 10:54 pm
  John, I’d rather trade the debt than the equity. Thanks.
  
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