Due to a prolonged period of slowdown in the shipping industry, South Korea’s cash-strapped company Hanjin Shipping has started negotiations with local and financial companies in an effort to delay the repayment of its debt, according to Yonhap News Agency.
Namely, the shipping line is trying to push the repayment of its KRW 2.5 trillion (USD 2.16 billion) debt by up to three years as it struggles to boost liquidity.
If the talks bear fruit, the delay would help the company save millions, Yonhap cited market analysts.
Hanjin Shipping, which is currently under creditor-led restructuring, is struggling to agree with shipowners on charter rate cuts as the company failed to receive any positive response in its first round of talks with 22 shipowners.
At the beginning of May, Hanjin Shipping received approval from its seven lenders, led by state-run Korea Development Bank, to move forward with its corporate rehabilitation program.
The financially troubled company tried to get back on track earlier this year as it disposed of a number of its assets.
World Maritime News Staff