In International Shipping News 11/08/2016
Source: The Investor
South Korea’s top financial regulator said on Aug. 10 that Hanjin Shipping, which is reeling from huge debts, will not be given financial aid and has to stand on its own feet or face court receivership.
“Hanjin Shipping is in talks over ship mortgage loans with 34 financial institutions” in addition to charter rate negotiations and private debt rescheduling efforts, Yim Jong-yong, chairman of the Financial Services Commission, said in a monthly press briefing.
The government will let the company resolve its liquidity crisis on its own and handle the issue in accordance with “principles” in case of failure, he stressed.
Hanjin is expected to suffer a cash shortage of as much as 1.2 trillion won (US$1.10 billion) in the next one and a half years.
Creditors have called on Hanjin to first cover 700-900 billion won through its self-restructuring for any financial support. But the shipping line claims it is hard to finance more than 400 billion won.
Source: The Investor
