SEOUL, May 24 (Reuters) – Creditors of struggling South Korean shipper Hyundai Merchant Marine Co Ltd have agreed to a 680 billion gained ($570.27 million) debt-for-equity swap, lead creditor financial institution Korea Development Bank stated on Tuesday.

Container traces, which transport all the things from bananas to iPhones, are battling the confluence of a glut of ships, a faltering world economic system and weaker client demand.

Hyundai Merchant Marine had money owed of about 5.2 trillion Korean gained as of the quarter ending in March, in line with an organization submitting. Squeezed by what’s extensively thought-about the worst downturn ever for the business, the Korean shipper is attempting to barter decrease constitution charges from shipowners.

The settlement is contingent on situations together with Hyundai Merchant Marine becoming a member of an alliance involving main delivery companies. A Korea Development Bank official stated the dimensions of stake the collectors will collectively find yourself with in Hyundai just isn’t but set. ($1 = 1,192.4200 gained) (Reporting by Se Young Lee; Editing by Muralikumar Anantharaman)

(c) Copyright Thomson Reuters 2016.