EU approves proceeds from sale to HMM

HMM’s car-carrier division was finally separated from HMM.
The Korea Industrial Bank, its chief creditor, announced November 30 that it received official notice from the EU. The EU confirmed that Swedish Wallenius Lines and Norwegian Wihellumsen Lines were not in breach of any anti-trust laws in taking over HMM’s car-carrier division.
Creditor groups will receive $1.25 billion out of the proceeds from the sale, $1.5 billion excluding vessel finance.
“At last, HMM wrapped up car-carrier division matters as the EU found no anti-trust problems, which has been the major obstacle. Proceeds from the sale will be paid as soon as possible while the matter is solved,” said an insider from creditor groups.
Proceeds from the sale have been delayed since the EU began investigating the HMM car-carrier division sale and whether or not it was in violation of anti-trust laws. Creditor groups originally decided to support the deal by underwriting finances at the end of November.
Proceeds from sale will be used to pay back loans from creditor banks and debenture except for HMM’s operating costs.