KAMCO to take control of 20 Korean ships from six carriers

Time: 2017-05-12 13:39
SOUTH Korea's debt clearing house Korea Asset Management Corp (KAMCO) will take control of 20 ships worth KRW390 billion (US$344 miliion) owned by six local lines, according to media reports.
KAMCO will sign a contract to acquire the ships - a mix of containerships and bulk carriers - from SM Line, Korea Shipping, Korea Line, Namsung Shipping, Dooyang and Pan Ocean next week.
Ten of the 20 vessels were previously owned by now-defunct Hanjin Shipping, which filed for court receivership in its native South Korea in late August 2016, and was officially declared bankrupt by a South Korean bankruptcy court in February 2017.
The ships will then be leased back to the six lines via 20 special purpose companies.
With the fund, the cash-strapped carriers will be able to boost their financial health by paying off debts with high borrowing costs, and switching from short-term loans to long-term loans. In addition, this could also help ease the financial troubles of SM Line, the nation's newest carrier, which acquired some of the major assets of Hanjin Shipping.

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