Creditors Approve Hanjin Heavys Financial Aid

HHIC Busan-based shipbuilder Hanjin Heavy Industries and Construction (HHIC) is in line to receive an emergency financial boost of USD 109 million from its creditors, led by Korea Development Bank, according to the Korea Economic Daily. The restructuring shipyard has agreed that it will hand over some of its assets, which include 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. The announcement comes on the back of HHICs recent statement that it was experiencing liquidity shortage and has requested a voluntary agreement for a debt rescheduling scheme. Driven by sluggish industry conditions as well as the companys losses due to an investment in the Philippines-based Subic Shipyard, HHIC has been posting losses for six years and the companys debt now stands at USD 1.32 billion. The approved financial aid will help Hanjin to postpone its debt payment and secure financial backing to remain afloat. World Maritime News Staff