The committee, consisting of representatives from Korea Development Bank, Korea Credit Guarantee Fund, finance companies, and other creditor banks, said on the same day that the amount Hyundai Merchant Marine will have to redeem at the end of this month would be 56 billion won, 20 percent of the total, while the remaining balance of 224 billion won will be covered by funds secured through private equity bond issuing. The whole amount of the bonds will be assumed by Korea Development Bank.

 

Of the newly issued bonds, 10 percent will be handed over to the corporate bond stabilization fund, 30 percent to creditor banks, and 60 percent to Korea Credit Guarantee Fund, which will in turn securitize the debt and issue primary collateralized bond obligations (P-CBOs). After the debt conversion is successfully completed, the shipping company will sign a special agreement with Korea Development Bank and undertake a financial restructure plan based on the terms of it.