Hyundai Merchant Marine Co., a South Korean shipping line, has begun work to acquire key assets of the troubled Hanjin Shipping Co., according to industry sources and creditors Sunday.

Creditors led by the state-run Korea Development Bank have recently taken control of Hyundai Merchant from Hyundai Group, as part of restructuring of the debt-heavy No. 2 South Korean shipper.

Under the restructuring program, Hyundai Merchant has received business consulting from A.T. Kearney, IBM and a local consulting firm. A.T. Kearney is providing consulting on which of Hanjin Shipping assets are healthy. Hanjin Shipping operates 97 container ships. Of them, Hanjin Shipping owns 37 and the other 60 are being chartered. 

Hyundai Merchant plans to acquire Hanjin's chartered ships, which analysts say may be a simple process. Hyundai Merchant is seeking to bolster its shipping route between South Korea and the United States, which had been dominated by Hanjin Shipping. "With the Korea-U.S. route becoming an ownerless mountain, Hyundai Merchant is expected to increase its portion of shipping on the route," said an official at the creditors of Hyundai Merchant. 

Hyundai Merchant is expected to announce its plans to acquire key assets of Hanjin Shipping in November after the business consulting process is over.

Source : XINHUA