The Odd Trio: HMM, Maersk and MSC
In one of the more bizarre twists in the container shipping market it emerged last week that financially troubled carrier South Korean Hyundai Merchant Marine (HMM) is in talks with the world’s two largest lines, Maersk Line and MSC about the possibility of joining them in the 2M alliance.
This is a significant shift in mood music from HMM, which until recently was in danger of being a container pariah, locked out of the new alliance structures for next year after years of heavy losses, says Drewry Research.
HMM made an operating loss of $136 million in the first quarter 2016 from all activities (results from its container operations for 2015 and 1Q16 are yet to become available), but progress is being made on its large debt-restructuring process headed by their main creditor, the Korea Development Bank (KDB).
HMM has raised some cash through asset sales and is hoping for about another $2.2 billion through a new share issuance, while bondholders and financial lenders have agreed to debt rescheduling terms.
There is even talk that the company will order 10 x 14,000 teu newbuilds before the year is out.
As it stands, the company has successfully met two of the three conditions creditors laid out for the debt relief programme and a bargain for holding off a court receivership, and now could be on the verge of meeting the third condition – finding an alliance home.
