Hanjin Shipping Lenders Reject Revamp Plans as Insufficient
- Company’s voluntary debt-restructuring program ends Sept. 4
- Hanjin may need to decide whether to file for receivership
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Creditors of Hanjin Shipping Co. won’t extend support for South Korea’s biggest container shipping line as restructuring plans submitted by the company are insufficient to tide over its cash shortage.
The board of Hanjin Shipping will meet Wednesday morning in Seoul to decide on court receivership, the company said in an e-mailed response to Bloomberg News. The shipping company’s plans fall short of requirements for creditors to provide help, main lender Korea Development Bank said Tuesday. The company may still need 1 trillion won ($893 million) to 1.3 trillion won in cash even after it agreed on charter-rate adjustments with shipowners and extended the maturities of some loans, the state-run lender said.