In International Shipping News 26/07/2016
Source: The Korea Herald
Korean Air, a Hanjin Group affiliate, is likely to help raise liquidity of up to 700 billion won (US$615.22 million) for ailing Hanjin Shipping, according to industry sources on July 25.
Hanjiin Shipping — the world’s seventh-largest shipping line — is required to hand in plans for raising up to 1.1 trillion won to its main creditor bank, the state-run Korea Development Bank, by the end of this month. A large part will have to come from Korean Air, which had initially offered to provide 400 billion won.
This is because creditor banks have reiterated that they would not be providing any relief funds for Hanjin. The 1.1 trillion won is based on the assumption that Hanjin is successful in negotiations with foreign vessel owners for cutting chartering fees.
The amount may go down further if Hanjin is able to extend the maturity dates of loans it took out to build ships. Shipping companies borrow up to 90 percent of construction expenses since it takes them several decades to cash in on the ships.
Source: The Korea Herald
