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Hanjin Group chairman urged to cough up to help ailing shipping line

Hanjin Shipping’s main creditor has reiterated that the chairman of Hanjin Group needs to cough up cash to help the line’s liquidity crunch.

“To bring back Hanjin Shipping to life, chairman Cho Yang-ho needs to take the risk and make up his mind,” Lee Dong-geol, chairman of Korea Development Bank (KDB) told the JoongAng Ilbo newspaper earlier this week.

The line is meant to get its finances in order by August 4, although indications suggest creditors will extend the deadline by a month. Local media reports Hanjin needs to come up with KRW1trn ($870m) to secure liquidity.

“The company needs to fund itself by all means,” KDB’s Lee said. The banking boss also observed that another local line that is coming out of restructuring has set an example for Hanjin to follow.

“HMM succeeded in company normalisation without receiving a penny from its creditors,” Lee said.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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