The ailing South Korean container carrier Hanjin Shipping has taken a step toward bankruptcy as its creditors said they would not provide additional financial support to the company.
The creditors, led by state-run Korea Development Bank (KDB), said they would halt financial support for the company as of September 4, Reuters cited KDB.
Namely, Hanjin Shipping’s self-rescue plan fell short of the creditor’s demands as the company earlier said that it aims to collect KRW 400 billion through the sale of its assets, while the creditors urged the carrier to increase this number to around KRW 700 billion.
The company has been under a creditor-led restructuring scheme since May 2016 after it collected some USD 4.39 billion in debt.
The restructuring was expected to facilitate Hanjin’s push for normalization of operations along with discussions on charter rate reduction and alliance reorganization.
World Maritime News Staff