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Korea Shipping to buy 10 HMM box ships as part of US$633.7m prop up
STATE-BACKED ship financing company Korea Shipping plans to pump KRW720 billion (US$633.7 million) into Hyundai Merchant Marine this month or next month to shore up its capital base, with part of the funds to be spent on ten containerships operated by HMM, Yonhap reported, quoting a standing member Sohn Byung-doo of the Financial Services Commission.
Funds will be transferred to HMM through the purchase of stocks and debts. About KRW150 billion will be set aside to buy HMM stock, with the remaining funds used to buy debts and convert these into stocks.
Korea Shipping Co. was established this month with an initial capital of KRW1 trillion to help local shipping lines buy new vessels in a bid to support local shipping firms, as well as shipbuilders, struggling with falling new orders and mounting losses.
Separately, HMM will place orders for five container vessels and two or three oil tankers later this year with the state-backed financing programme, reported Marine Link.
Funds will be transferred to HMM through the purchase of stocks and debts. About KRW150 billion will be set aside to buy HMM stock, with the remaining funds used to buy debts and convert these into stocks.
Korea Shipping Co. was established this month with an initial capital of KRW1 trillion to help local shipping lines buy new vessels in a bid to support local shipping firms, as well as shipbuilders, struggling with falling new orders and mounting losses.
Separately, HMM will place orders for five container vessels and two or three oil tankers later this year with the state-backed financing programme, reported Marine Link.
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