By Kyunghee Park and Kyungji Cho

(Bloomberg) — More than two years after saying a 3.3 trillion received ($2.7 billion) bailout of the Hyundai Group, chairwoman Hyun Jeong Eun remains to be struggling to maintain her late husband’s enterprise empire afloat.

The South Korean conglomerate, a group of 21 firms, introduced further bailout measures Tuesday that embrace promoting stakes in Hyundai Securities Co. and Pusan Newport Co. to sort out a “liquidity crisis” that hasn’t been resolved. That’s regardless of having raised 3.6 trillion received as of Dec. 31 — 8.6 p.c above its goal — by a mix of asset gross sales, share gross sales, price cuts and loans.

Hyun, a housewife who grew to become head of Hyundai Group after the 2003 suicide of her husband, the favored son of founder Chung Ju Yung, is making an attempt to rebuild an industrial empire splintered by household infighting, dangerous money owed and an ill- fated effort to increase into North Korea.

At the center of the group’s troubles is flagship Hyundai Merchant Marine Co., the unprofitable delivery firm that has a lot debt it quantities to 786 p.c of its fairness. The firm has 2.2 trillion received of debt coming due by Sept. 30, and solely 200 billion received of accessible money. With the delivery market turning worse, analysts see no finish in sight for Hyundai’s struggles.

“This year is going to be a brutal year for Hyundai Group,” mentioned Park Moo Hyun, an analyst at Hana Daetoo Securities Co. in Seoul. “With the slump in the shipping industry, Hyundai Merchant doesn’t have the luxury of seeking help from other affiliates within Hyundai Group.”

Debt Restructuring

The firm will exert each effort to promote Hyundai Securities and attain an settlement on restructuring maturing bonds with buyers, mentioned Lee Jun Ki, a spokesman for Hyundai Group.

“The group expects these efforts to help encourage creditors to also restructure debt to help tide over the the group’s financial problem,” Lee mentioned. “At the same time, Hyundai Merchant will try to revise charter rates to enable it to become profitable this year.”

Korea Investors Service and Korea Ratings Corp each reduce Hyundai Merchant’s credit standing to B+ final 12 months. Korea Investors Service, a neighborhood affiliate of Moody’s Investors Service, has positioned the corporate’s ranking on adverse watch, saying its liquidity threat might enhance additional if there are not any further restructuring plans or monetary assist from the federal government or collectors.

Hyundai Merchant shares dropped 1.9 p.c Wednesday to three,120 received in Seoul, in contrast with the 35,443 received it closed at on Dec. 31, 2010. After 5 straight years of declines, the shares have misplaced 24 p.c of their worth to this point this 12 months, in comparison with the three.6 p.c fall within the benchmark Kospi Index.

Emergency Funding

South Korea’s second-largest delivery firm is amongst delivery traces worldwide which can be exploring mergers, promoting belongings and decreasing workforce to stem losses as years of slowing international commerce damp their earnings. Hyundai Group is taking further steps to enhance the flagship’s funds after discussions with collectors, together with Korea Development Bank.

Hyundai Merchant will promote its bulk ships which can be tied to long-term contracts, in addition to a stake in affiliate Pusan Newport Co., to lift funds as slowing commerce and extra capability weigh on delivery charges.

The unprofitable firm will obtain 100 billion received in emergency funding, its guardian Hyundai Group mentioned Tuesday. This contains 30 billion received from group chairwoman Hyun and 70 billion received from asset gross sales, together with a stake in Hyundai Asan Corp., the operator of the group’s tourism tasks in North Korea.

In 2013, the Hyundai Group mentioned it deliberate to promote Hyundai Securities, two different monetary models and a lodge to lift as a lot as 1.3 trillion received. Hyundai Merchant additionally deliberate to lift about 1.5 trillion received promoting stakes in container terminals and restructuring its bulk-cargo operations.

“Previous steps weren’t enough to resolve its liquidity crisis because of the persistently sluggish shipping environment,” the group mentioned in Tuesday’s assertion.

©2016 Bloomberg News