Hanjin Heavy creditors agree on debt-to-equity swap deal

Hanjin Heavy creditors agree on debt-to-equity swap deal

South Korea’s state-owned policy bank Korea Development Bank (KDB) has announced that creditors of the financially troubled Hanjin Heavy Industries have agreed to revive the yard through a debt-to-equity swap scheme.

The scheme will see the creditors retire around $610m of the yard’s debt in exchange for about 84% of the company’s stock, and KDB will become the company’s largest shareholder. It will cover debts owed to a group of Filipino banks by Hanjin Subic, which filed for court receivership in January.

KDB said the scheme will be able to build the foundation to normalise operations by resolving risks upon completion.

According to VesselsValue data, Hanjin Subic currently has an orderbook of 18 vessels.

Hanjin Heavy’s stock trading has been suspended since February 13 and the company has until April 1 to prove to the stock exchange that it has solved its debt issues.

 

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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