Hyundai Merchant Marine (HMM) has been given another week to renegotiate charter contracts with shipowners and stave off court receivership.

According to local reports Korean financial authorities and creditors have given the company more time to try and cut charter rates have failed in negotiations with shipowners last week.

“We will let the company negotiate without working against (physical) deadline,” said Financial Services Commission (FSC) chairman Yim Jong-yong told reporters on Friday, local reports said.

“What’s important is the result. We will allow more time for the talks in final stage to end smoothly,” Yim said.

News agency Yonhap also reported Yim saying on the possible outcome: "We are neither optimistic nor pessimistic (about the results)."

HMM is reported to be trying lower charter rates by an average of 28% for vessels it charters in from Danaos, Navios Maritime Holdings, Consolidated Contractors Company, Eastern Pacific Shipping and Zodiac Maritime.