Hyundai Merchant Marine Co., a major shipping line here, said Monday that its talks to join a global shipping alliance will be completed this month, denying news reports that the financially-troubled shipper has failed to join 2M, one of the key conditions for financial help from its creditors.

"We are still in negotiations (with 2M) to iron out differences," said an official at Hyundai Merchant. "Our plan to complete the partnership talks by this month has not changed."

Since May, Hyundai Merchant has been seeking to become a member of 2M, the world's largest shipping alliance, one of the prerequisites set by its creditors to avert court receivership.

In April, its creditors, led by the state-run Korea Development Bank, approved the shipper's restructuring plan in return for the company meeting three key conditions -- a debt recast, a charter rate cut and inclusion in a global shipping alliance.

In July, Hyundai Merchant signed a memorandum of understanding with the world's largest shipping alliance, led by AP Moeller-Maersk A/S and Mediterranean Shipping Co., but the shipper is seeking to sign a formal deal on 2M membership.

Membership in a global alliance is very important for the shipper to take on bigger rivals amid a glut in capacity, which has led to a drop in freight rates.

Hyundai Merchant Marine, currently under a creditor-led restructuring scheme, is seeking to take over key assets from Hanjin Shipping Co., which has been under receivership since September. (Yonhap)