Hyundai Merchant Marine Raises $2.4 billion

By Matthew Flynn

The restructuring of Hyundai Merchant Marine may have been the ultimate banker’s Odyssey.

Level a mountain of debt, uproot and replant the car carrier division, tender the container terminals to the giants of the port industry, and disentangle the company from shareholdings with other struggling affiliates. For good measure, sell the roof over the company’s head with the disposal of its headquarter’s building, then do a handful of asset-backed security issues on LNG freight receivables.

At the same time, avoid the sniping from politicians determined to find proof the company illegally transferred funds to North Korea. This history of the company’s involvement with the Hyundai Group’s campaign in North Korea is hard to ignore because it appears to be both the undoing of HMM’s financial security and the source of its current regulatory problems.

Against this backdrop, HMM and their advisors, Credit Suisse First Boston, pulled off one of the most substantial and successful shipping restructuring perhaps in several decades.

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