Facing a liquidity crisis Hanjin Heavy Industries & Construction (HHIC), once the world’s fourth largest shipbuilder, has asked for help from its creditors.
HHIC is seeking an autonomous arrangement with its creditors, whereby its backers will postpone demands for loan repayments to allow HHIC to get through its current cash-flow issues.
HHIC is going through a restructuring having suffered a slump in orders. Lead creditor Korea Development Bank will look at the yard’s finances before signing off the autonomous arrangement.
HHIC has been offloading non-core assets lately, most recently land in Incheon, while it has won a series of orders leading it to believe it can get through the shipbuilding downturn. As well as its home base in Busan, it operates a giant yard in the north of the Philippines.