Shares of Hyundai Merchant Marine fell to a 52-week low Monday on renewed worries that the debt-ridden shipping line may be heading for court receivership.
The share price closed at 1,895 won ($1.65), 8.01 percent lower than the previous session’s close, against the benchmark KOSPI’s 0.28 percent decline.
The stock’s slide came after Finance Minister Yoo Il-ho publicly expressed his concern over the country’s No. 2 shipping line struggling under mounting debt as marine trade continues to shrink on the global economic slowdown.
Meeting reporters in Washington on Friday, Yoo said that if the ongoing self-help efforts fail to revive ailing shipping firms, the government would have to take action.
“Hyundai Merchant Marine worries me most,” he was quoted as saying.
Hyundai Merchant has been negotiating with ship owners to cut freight rates on chartered fleets, the outcome of which could affect the firm’s fate. Creditors, including Korea Development Bank, are keenly watching the negotiations to decide whether to roll over debts and extend fresh loans.
HMM is also selling assets to secure cash and has recently agreed to sell its entire stake in affiliate Hyundai Securities for about 1.2 trillion won.
By Lee Sun-young (
milaya@heraldcorp.com)