Hanjin Shipping Faces Financial Crisis

South Korea’s cash-strapped company Hanjin Shipping has still not reached an agreement with shipowners on charter rate cuts.

News ID: 67599

Date: 19 July 2016 - 12:14

According to MANA, the company is negotiating with 22 shipowners as part of its self-rescue efforts.

The announcement follows recent reports that Hanjin Shipping has “almost reached a deal” for a 27-28 percent charter rate cuts, Yonhap writes.

If the talks bear fruit, the company would reportedly save up to KRW 700-720 billion over the next three and a half years.

Currently under creditor-led restructuring, Hanjin earlier started negotiations with local and financial companies in an effort to delay the repayment of its KRW 2.5 trillion (USD 2.16 billion) debt by up to three years as it struggles to boost liquidity.

The financially troubled company tried to get back on track as it disposed of a number of its assets.

Hanjin’s latest sale included the disposal of over 21 percent of its stake in the Vietnamese Tan Cang Cai Mep International Terminal (TCIT), raising a total of some KRW 37.7 billion (USD 32.8 million).