South Korean shipbuilder Hanjin Heavy Industries and Construction (HHIC) will receive an additional amount of KRW 120 billion (USD 104.8 million) of financial aid from its creditor, Yonhap news agency said.
The creditors, led by Korea Development Bank (KDB), have previously approved an emergency financial boost of USD 109 million to Hanjin Heavy in January this year.
At the time, the shipbuilder said it would hand over some of its assets, which included the building and land of the East Seoul Terminal and the inland area of the Incheon North Port, as collateral in return for the financial aid.
Driven by sluggish industry conditions, and financial losses stemming from its investment in the Philippines-based Subic Shipyard, Hanjin has been posting losses for six years now.
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.
The approved financial aid will help Hanjin to postpone its debt payment and secure financial backing to remain afloat.
World Maritime News Staff