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.