By Kyunghee Park

(Bloomberg) — Hyundai Merchant Marine Co., South Korea’s second-biggest delivery firm, plans to put in writing down its capital by 86 % after losses mounted from extra capability, and weak world demand led to a plunge in delivery charges.

Hyundai Merchant will scale back its capital to 173.2 billion gained ($143 million) from 1.2 trillion gained as of April 21 to assist enhance its steadiness sheet, the corporate mentioned in a regulatory submitting Thursday. It will search approval from shareholders at a March 18 assembly.

After posting losses in 5 of the previous seven years, Hyundai Merchant has been promoting belongings in an effort to cut back debt that amounted to nearly 800 % of its fairness. Shipping strains worldwide have been promoting belongings, reducing staff and contemplating consolidation to stem losses as years of slowing world commerce and overcapacity eat into delivery charges.

Trading of Hyundai Merchant shares will likely be halted from April 20 to May 4, and can resume May 6, the corporate mentioned in an announcement to the inventory change in Seoul.

Hyundai Merchant acquired 100 billion gained earlier this 12 months, together with 30 billion gained from Chairwoman Hyun Jeong Eun, to shore up its funds. The firm is also in talks to decrease constitution charges on vessels it leased from shipowners and is looking for to restructure its debt so it may safe monetary help from creditor banks.

Shares of Hyundai Merchant gained 3.4 % Thursday, closing at 3,160 gained earlier than the announcement. The inventory has dropped 66 % prior to now 12 months, making it the third-worst performer on the Kospi 200 index.

Rates to ship cargo to Los Angeles from Hong Kong had been $718 per 40-foot container on the finish of final 12 months, 64 % decrease than a 12 months earlier, in keeping with information supplied by Drewry Shipping Consultants.

© 2016 Bloomberg L.P