No Deal on Charter Rate Cuts for HMM

first_imgzoom Financially troubled South Korean shipping company Hyundai Merchant Marine (HMM) has failed to seal a deal with ship owners on charter rate cuts, Yonhap reports, citing company officials.The talks were launched in February and the company was optimistic on reaching the deal as it had reportedly managed to agree on cuts with 60 percent of owners. Under the plan, ship owners were requested to lower their charter rates by 28 percent on average by the middle of May, according to Yonhap.This exerts further pressure on the struggling company which counted on the rate reductions as one of the key preconditions for the company to move forward with its restructuring process and thus avoid going bankrupt.However, the talks between the two parties are not completely over and their might be still some room for an agreement.Last month, HMM and state-owned Korea Development Bank (KDB) concluded a debt-for-equity swap arrangement, which will see KDB take 30 % of shares in total and the rest of the creditors will take 50% in shares in the company.The move is expected to keep the company afloat until it completes its business normalization plan.The company closed the first quarter of the year with an operating loss of KRW 162.9 billion (USD 139 million) and a net loss dived of KRW 276.1 billion.World Maritime News Stafflast_img read more

Truck rams into security post in Mullaitivu killing soldier injuring another

A truck crashed into an Army security post in Mullaitivu killing one soldier and injuring another.The Army media unit said that the mini lorry (Canter), going at high sped, crashed into a military sentry point killing one soldier on duty and injuring another. The vehicle had lost control and crashed into the sentry point.Private H.P.S Pathirana of the 6 Sri Lanka Corps of Military Police (SLCMP) lost his life on admission to the Mullaittivu Hospital. Staff Sergeant S.D.R Dissanayake of the 6 SLCMP received injuries. Mulliyaweli Police are conducting investigations. read more