Shipper Aims to Stay Seaworthy

Hyundai Merchant Marine Co. submitted rescue plans to Korea Exchange Bank, its main creditor, over the weekend, promising to sell a stake in the company if another cash shortage occurs.

"Hyundai Merchant's special agreement includes the company's self-help plans and a promise to sell off its stake if a liquidity crisis hits again," a high-ranking official at Korea Exchange Bank said Sunday. "The agreement was a precautionary move and has nothing to do with the current situation of the company."

Korea's largest shipping firm reportedly agreed to cut debts by selling off its 12.5 percent interest in Hyundai Heavy Industries by the end of the year and by leasing out some of its ships. It recently issued conversion loans to postpone the maturities of 80 percent of the 165 billion won ($128 million) in loans that came due by April.