[THE INVESTOR] Creditors of financially ailing Hanjin Shipping will decide on Aug. 30 whether to put the nation’s largest container carrier under court receivership.
The creditors -- led by state-run Korea Development Bank -- will convene a meeting at 11 a.m. to decide whether to inject more funds into Hanjin Shipping or send the shipper for court receivership. They will announce the decision by afternoon, an official with the creditors said.
Last week, Hanjin Shipping submitted a fresh self-rescue plan to the creditors that includes 400 billion won (US$357.72 million) from its affiliate Korean Air and 100 billion won from other Hanjin’s affiliates and Hanjin Group Chairman Cho Yang-ho’s private account to secure liquidity.
However, the creditors expressed disappointment with the proposal, claiming that the amount is no different from the previous proposal and falls short of some 1.3 trillion won the shipper needs to pay back debt and operate its business.
Many industry insiders believe it is likely for Hanjin Shipping to enter court receivership as the creditors remain unwilling to inject more funds.
But if the ship carrier is dismantled, it could cause the South Korean shipping industry a maximum of 17 trillion won in damages, according to a study by the Korea Shipowners’ Association.
By Ahn Sung-mi (sahn@heraldcorp.com)
The creditors -- led by state-run Korea Development Bank -- will convene a meeting at 11 a.m. to decide whether to inject more funds into Hanjin Shipping or send the shipper for court receivership. They will announce the decision by afternoon, an official with the creditors said.
Last week, Hanjin Shipping submitted a fresh self-rescue plan to the creditors that includes 400 billion won (US$357.72 million) from its affiliate Korean Air and 100 billion won from other Hanjin’s affiliates and Hanjin Group Chairman Cho Yang-ho’s private account to secure liquidity.
However, the creditors expressed disappointment with the proposal, claiming that the amount is no different from the previous proposal and falls short of some 1.3 trillion won the shipper needs to pay back debt and operate its business.
Many industry insiders believe it is likely for Hanjin Shipping to enter court receivership as the creditors remain unwilling to inject more funds.
But if the ship carrier is dismantled, it could cause the South Korean shipping industry a maximum of 17 trillion won in damages, according to a study by the Korea Shipowners’ Association.
By Ahn Sung-mi (sahn@heraldcorp.com)
