Financially-troubled South Korean shipping company Hanjin Shipping is likely to receive approval for its corporate rehabilitation program from its lenders, according to the Korea Herald.
Seven lenders, led by state-run Korea Development Bank, are expected to grant approval for the company’s restructuring plan on Wednesday, after Hanjin submitted a formal request to restructure its debt on April 29, the Korea Herald cited relevant sources.
The announcement follows Hanjin Shipping’s latest asset disposal as the company continues to struggle with its debts.
Namely, Hanjin booked KRW 34 billion (USD 29.6 million) from the sale of its remaining stake in H-Line Shipping just last week.
In November 2015, Hanjin said that it plans to sell the 22.2% stake in H-Line Shipping, an entity created in 2014 following Hanjin’s offloading of dry bulk and LNG shipping businesses for USD 298 million.
Earlier this year, Hanjin disposed of its office building in London for KRW 66.7 billion (USD 57.2 million).
Having been faced with an outstanding debt of USD 406 million due in the first half of this year, the company is working on improving its financial structure and “normalizing” its management.
World Maritime News Staff