South Korean shipping company Hyundai Merchant Marine has struck a deal with containership owners on 20 percent charter rate cuts, the company said in a filing to Korea Exchange.

An agreement has also been reached with owners of bulk carriers for a 25 percent charter rate reductions.

The final deal is a compromise solution as the company initially sought a 27 percent rate decrease. As stipulated under the agreement, the cuts will be in force over the next three and a half years.

To remind, the company’s creditor group agreed on HMM’s debt restructuring proposal on condition that the cash-strapped firm successfully concludes its negotiations with bond holders and shipowners.

To that end, HMM has already gained bond holders’ approval for its debt restructuring proposal, as the company faces USD 4.48 billion wall of debt.

Now that all hurdles have been overcome HMM is expected to join the recently created container shipping alliance, The Alliance.

The South Korean government said earlier that it plans to keep supporting HMM to join the Alliance.

Hanjin Shipping is also in talks with 22 shipowners on charter rates and planning to meet with bond holders to restructure its debt. Hanjin is required to make its self-rescue efforts to secure liquidity as HMM did.