South Korea’s Hanjin Heavy Industries has signed a memorandum of understanding (MOU) with its creditors to receive a KRW 120bn ($103m) cash injection, and will sell off property and businesses worth KRW 2tr ($1.71bn) as part of its self-restructuring plans.
The ailing shipyard has been under the joint management of its creditors since January. Under their guidance, the yard plans to implement self-restructuring measures including the sale of property and of its energy-related subsidiaries such as Daeryun Power Company and Byeollae Energy Company, according to Korean press.
Hanjin Heavy’s nine creditors, led by the Korea Development Bank, gave the ailing shipyard an emergency financial injection of KRW 130bn (then $109m) in January.
The second injection was mooted earlier this month and was formalised in the MOU on Wednesday.
