Hanjin Heavy Pursues Debt Restructuring

Image Courtesy: HHIC

South Korean shipbuilder Hanjin Heavy Industries and Construction (HHIC) is seeking to restructure its debt with its creditors.

HHIC said that it was experiencing liquidity shortage and has requested a voluntary agreement with its creditor Korea Development Bank (KDB) to approve a debt rescheduling scheme.

Hanjin has been posting losses for six years now due to a sluggish industry condition but also in part due to financial losses stemming from its investment in the Philippines-based Subic Shipyard.

Should the creditors decide to approve the restructuring plan Hanjin will be able to postpone its debt payment and secure financial backing that would enable the yard to remain afloat.

The shipbuilder’s debt stood at KRW 1.6 trillion (USD 1.34 billion) in November last year, including KRW 500 billion owed to KDB and KRW 210 billion to Hana Bank.

HHIC should have a reply on the request by the end of the month following a creditors’ meeting.

The company’s shares fell to a record low in Seoul on the back of the announcement, Bloomberg reports, with Hanjin Heavy’s shares dropping 22 percent, the biggest decline since the stock started trading in 2007 and its parent Hanjin Heavy Industries & Construction Holdings Co. dropping by 18 percent, the most since its January 1985 debut.

World Maritime News Staff

Share this article

Follow World Maritime News

In Depth>

Events>

<< Mar 2017 >>
MTWTFSS
27 28 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31 1 2

14th Annual Green Ship Technology

4 concurrent streams focussing on innovation in ship design, energy management, emissions reduction & discharges to sea
Cargo owners’ response to increased pressure for a sustainable logistics chain…

read more >

Future Conference: Wind & Maritime 2017

The 6th Future Conference: Wind & Maritime – the conference in north-eastern Germany that connects wind energy with maritime industry - will focus on market and technology trends related to wind energy (onshore and offshore) and marine industry from 17 to 18 May 2017 in Rostock.

Current wind farm projects, development of internation markets, innovative concepts of operations and maintenance, sector linking, public participation, components for efficient wind power plants, concepts of naval architecture and digitalisation are some of the main topics presented by about 40 speakers. Exchange of information and networking towards new business activities between the more than 350 national and international expected participants are the objective here.

For the opening on 17 May 2017, we look forward to impulse presentations held by Prof. Dr. Uwe Leprich (Head of the Department of Climate Protection and Energy) of the Umweltbundesamt and Dr. Markus Tacke (Managing Director) of the Siemens Wind Power GmbH & Co. KG. Afterwards, parallel expert forums on wind energy take place. The evening reception in maritime atmosphere offers the opportunity for informal exchange and networking.

The conference will be continued on 18 May 2017 with the various forums and the parallel forum offshore wind solutions Mecklenburg-Vorpommern (title of a research and development project). Optionally, a wind tunnel can be visited after the conference (limited number of participants, first come - first serve).

The conference is placed under the sponsorship of the Prime Minister of the State of Mecklenburg-Vorpommern, Erwin Sellering.

More info

read more >

9th Annual Coasts and Marine Structures 2017 Conference

Discover Best Practise Strategies for Design, Planning, Construction and Asset Management

To remain competitive, Australian port operators must plan, design, manage and maintain their assets more creatively and proactively to meet future demands and drive profitability.

With this in mind, the Coast and Marine Structures Summit 2017 will focus on key considerations relevant to ensuring your existing assets are maximised and prepared to accommodate bigger vessels.

Hear from 20+ global experts including Maritime/Coastal Engineers, Contractors, Port Authorities and more, including GHD (USA), Indonesian Port Corporation (Asia), G-Group Consulting (New Zealand), Ausenco (Australia), Port Authority NSW (Australia), to name a few.

By attending this 2-day conference, you’ll learn about:

- Innovative planning and design of ports to create efficiencies that drive profit
- Best practice asset management strategies and new PIANC design principles for bulk terminals
- Proactive asset management and maintenance to improve durability and maximise and extend asset lifecycles
- Alternative material and protection techniques trialled and tested in the US and Europe
- Strategies to shift organisational culture and mindset from asset management to asset maintenance
- How you can leverage technology to increase the efficiency of your marine structures
- Case studies on retrofitting, expanding and upgrading your ports in cost-effective ways

More info

read more >

African Ports Expansion Conference 2017

Africa is experiencing a major surge in trade with growing volumes of cargo across its ports. To keep up with the increase, government…

read more >