Hyundai Merchant Marine almost completes talks on lease fee cut

Hyundai Merchant Marine Co. is expected to complete negotiations with foreign ship owners to lower vessel lease fees by May 16. According to finance and shipping industry sources on Tuesday, the debt-ridden South Korean shipping company has been in talks with its 22 ship owners and almost all of them except two to three reached an agreement. 

The Korean container carrier set a timeframe of May 16 for responses from its ship owners on its final notice. 

Key ship owners in the negotiations include Danaos (13 vessels), Zodiac Maritime (six), Navios Maritime Partners (five), Capital Ship Management (five) and Eastern Pacific Shipping (five). Hyundai Merchant Marine operates a total of 116 vessels, of which 83 are leased from foreign ship owners. Hyundai Merchant Marine and Danaos have agreed to lower lease fees. The company is hammering out differences with Zordiac Maritme. 

A creditor bank official said the ship owners were informed of the company’s normalization plan that includes debt rescheduling and lease fee adjustment based on due diligence results and a letter to request the lease fee reduction will be sent with a response deadline by May 16.

By Chung Seok-woo and Yoon Jin-ho