Financially embattled Hyundai Merchant Marine and the owners of ships that it leases are set to hold final talks here for cutting charter rates, industry sources said Wednesday.

The talks come as creditors of the country’s No. 2 shipper is putting pressure on Hyundai Merchant to place it under court receivership should they fail to get “meaningful” results from the negotiations. 


Hyundai Merchant and high-ranking officials from five major shipowners will discuss the charter rate cut in downtown Seoul later in the day.

Hyundai Merchant has been in talks with shipowners to cut the rates since February.

Last month, the creditors gave a green light to the shipper’s self-rescue plans on the condition that it cuts the charter rates by an average 28 percent by mid-May.

“It is unclear if we will strike a deal today, and we still have an even chance,” said a company official.

Hyundai Merchant recorded 276.1 billion won ($234.2 million) in net loss during the January-March period, with sales declining 18 percent to 1.2 trillion won. The company also suffered an operating loss of 163 billion won.

(khnews@heraldcorp.com)