In International Shipping News 08/09/2016
The main creditor of Hanjin Shipping refused a South Korean court’s request to give further financial support to the debt-ridden shipper, local news reported on Sept. 8.
The Seoul Central District Court managing Hanjin’s receivership process, has asked the state-run Korea Development Bank, the main creditor of the shipper, and related government ministries to provide debtor-in-possession financing.
KDB, however, decided not to extend fresh funds, saying it is questionable whether it will be able recoup the amount.
Earlier this week, Hanjin Group and its Chairman Cho Yang-ho announced 100 billion won (US$91.41 million) financial aid to cover immediate costs rising in the wake of its court receivership filing last week. Billions of won worth cargo is stranded at seas, while Hanjin Shipping’s vessels are unable to dock or unload cargo at ports, as operators fear Hanjin Shipping may not be able to make payments.
The court, however, requested additional funds from the creditor, saying it is unclear when Hanjin Group’s support package would be executed and the funds are far short of the amount required to normalize the shipping line’s operation.
Source: The Investor
