By Kyunghee Park and Heejin Kim

(Bloomberg) — Hyundai Merchant Marine Co. fell essentially the most in three weeks in Seoul buying and selling on uncertainty over whether or not South Korea’s second-biggest container provider would receive deep reductions for charges on leased vessels in its negotiations with shipowners.

The firm, battling losses brought on by a stoop within the trade, is searching for decrease charges as a part of circumstances for a debt revamp plan agreed upon by lenders. Talks with shipowners are progressing nicely, mentioned Lee Jun Ki, a spokesman at Hyundai Merchant. Main creditor Korea Development Bank has mentioned Hyundai Merchant additionally must get its bondholders on board for the restructuring.

Shares of Hyundai Merchant dropped 7.6 % to shut at 12,850 gained in Seoul, the largest drop since April 18. The inventory, the worst performer on the benchmark Kospi index Tuesday, resumed buying and selling Monday after being suspended April 20 on the corporate’s plan to chop 86 % of its capital.

“It’s uncertain whether the company could get large discounts in charter costs, or less than what it wants,” Um Kyung A, an analyst at Shinyoung Securities Co. in Seoul, mentioned by cellphone. “Even if they succeed in the negotiations, it would put pressure on shipping rates and eventually lead to a drop in its earnings.”

Hyundai Merchant is in talks with 22 shipowners. It paid 975.8 billion gained ($833 million) in constitution charges final yr for 83 vessels leased.

All Efforts

With losses posted in 5 of the previous seven years, the Seoul-based container provider has been promoting property to scale back debt that had ballooned to virtually 800 % of its fairness. Years of slowing international commerce and overcapacity have depressed transportation charges, inflicting delivery traces worldwide to stem losses by chopping employees and contemplate consolidation.

Under the debt-overhaul plan in March, collectors agreed to increase maturity on loans for 3 months. Korea Development Bank mentioned May 4 that the delivery firm is in talks to succeed in agreements on the constitution charges by mid-May. Support from collectors can be dropped if the 2 circumstances aren’t met, the financial institution has mentioned.

Hyundai Merchant is scheduled to carry a gathering with its bondholders on May 31 and June 1, it mentioned in a regulatory submitting Monday.

“We are making all efforts to reach agreements within the deadline schedule given by the creditors,” Hyundai Merchant’s Lee mentioned.

© 2016 Bloomberg L.P