In what is likely to be another crucial week for the survival of Hanjin Shipping, reports are emerging in Seoul that Korean Air, a Hanjin Group subsidiary, will pump up to KRW700bn ($615m) into the struggling line, nearly twice as much as the KRW400bn originally earmarked.
Creditors had asked Hanjin Shipping, in the middle of an arduous restructuring, to come up with plans to find KRW1.1bn in liquidity by August 4, with lead creditor Korea Development Bank demanding Hanjin Group chip in a sizeable chunk of the capital. KDB and other creditors are expected to extend the restructuring deadline by another month this week as Hanjin struggles to meet all the requirements laid out by its lenders.
Separately, Hanjin Shipping is expected to get foreign lenders such as HSH Nordbank, Commerzbank and Credit Agricole to roll over a debt facility worth up to KRW500bn by up to four years.
Source: Splash 24/7
Source: Splash 24/7