With South Korea's two largest shipping lines effectively under the control of their largest creditor, the future looks uncertain for Hanjin Shipping and Hyundai Merchant Marine. On 22 April, Hanjin announced that its chairman and CEO, Cho Yang-ho, would cede control of the company to its largest creditor, Korea Development Bank. The latter and Han-jin's other creditor banks on 4 May approved the company's »application« for voluntary restructuring, which involves renegotiating the rates of its chartered-in fleet. The similarly troubled HMM has signed an agreement with KDB, to stay debt repayments until 29 June, while the bank conducts due diligence to see how to restructure the company's debt. Meanwhile, HMM has moved closer to receivership, after its talks with five of its 22 tonnage providers failed to secure a 30% reduction in hire rates. The five are Danaos Corporation, Capital Ship Management Corporation, Navios Maritime, Zodiac Maritime Agencies and Eastern Pacific Shipping. South Korea's Financial Services Commission, which regulates the country's financial institutions, said prolonging the talk would only hold up the reorganisation of HMM. It was this decided to call off the negotiations.
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