AsiaFinance and InsuranceShipyards

Hanjin Heavy asks creditors for breathing space

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.

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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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