Bondholders of Hyundai Merchant Marine(HMM) have approved the struggling shipper’s offer to recast its debt worth 240 billion won.
 
The bondholders announced the unanimous approval in a meeting with reporters, following a meeting with the company on Tuesday morning.
 
In the offer, the cash-strapped firm proposed that more than half of the debt will be swapped for its stocks and the remainder be paid back over the course of three years after a two-year grace period.
 
An official at Nonghyup, one of the HMM's institutional investors, said that the bondholders decided to approve the proposal after concluding that it would be better than placing the company under court receivership.
 
Investors also explained that the shipper’s negotiations with foreign ship owners about lowering charter fees are going smoothly.
 
Hyundai Merchant Marine will seek to reschedule the payment of additional debts totaling 390 billion won in a series of meeting with bondholders on Tuesday afternoon.