Hanjin Shipping Struggles to Cut Charter Rates

Financially-troubled South Korean shipping major Hanjin Shipping failed to receive any positive response in its first round of talks with 22 shipowners in an effort to cut charter rates, according to Yonhap news agency.

One of the company’s creditors reportedly said that Hanjin Shipping is expected to make some progress on the charter rates deal by early August, however, if it fails in the talks, the creditors would need to opt for other measures.

The shipping company is struggling to reach an agreement on the rates as it needs to negotiate with a large number of shipowners.

After submitting a formal request to restructure its debt with seven lenders, led by state-run Korea Development Bank, at the beginning of May, Hanjin Shipping received approval to move forward with its corporate rehabilitation program.

Having been faced with an outstanding debt of USD 406 million due in the first half of this year, the cash-strapped company disposed of a number of its assets as it aims to boost liquidity.

Namely, the company sold its remaining stake in H-Line Shipping for KRW 34 billion (USD 29.6 million) as well as the sale of Hanjin’s office building in London in March for KRW 66.7 billion (USD 57.2 million).

World Maritime News Staff

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