Hyundai Merchant to sell assets

Hyundai Merchant to sell assets

South Korea's largest shipping firm Hyundai Merchant Marine Co
said on Friday it would raise up to 1 trillion won (US$785
million) through sales of assets and securities by the end of the
year to pay down debt.

The company chalked up 165.7 billion won of net losses through
the third quarter this year due to heavy exposure to other ailing
Hyundai companies and its unprofitable tour business to North
Korea.

Analysts said the fund-raising was a step in the right
direction, but completing it would take time given a global
slowdown.

Hyundai Merchant was expected to sell all of its six port
terminals at home and abroad for about 500 billion won and share
holdings at two sister firms for about 400 billion won, a company
spokesman told Reuters.

"We also are negotiating with three U.S.-based investors to
sell our office buildings for about 100 billion won," chief
spokesman Kang Sung-koo said.

Shares of Hyundai Merchant were up 100 won to 2,000 by 0500
GMT, outpacing a 3.3 percent rise in the broader stock market
index.

Kang said the fund-raising plan, if successful, would
effectively chop its interest-bearing debts to about 1.8 trillion
won from 2.8 trillion.

"We will be able to earn more than 100 billion won of net
profit in 2002 due to softer financing costs and lower oil
prices," he said.

State-run Korea Development Bank said earlier in November it
could offer a bridge loan to Hyundai Merchant in case of a
temporary cash shortage before it launched its own rescue efforts
to raise money.