Hanjin to Sell Assets to Refinance Debt
Having been faced with ever tougher financial situation the South Korean shipping company Hanjin Shipping Co is reported to be seeking buyers for some of its assets, Yonhap news agency reports.
According to Yonhap’s unnamed sources, the company is considering the sale of certain terminals overseas as well as treasury stocks and an office building in London.
The proceeds from the sale would be used to refinance portion of its outstanding USD 406 million of debt due in the first half of this year.
The company’s strenuous efforts on cutting costs and bouncing back to profit proved successful as Hanjin returned to the black in 2015. Namely, the company’s net profit for 2015 was USD 6 million, a major recovery from the loss of USD 396 million in 2014.
However, despite these efforts, the market downturn in the container shipping industry along with low charter rates that resume their record lows in 2016, have seen the liner opt for asset sales.
World Maritime News Staff