Like a number of compatriot lines, Hanjin Shipping is looking at drastic financial remedial action. With a debt ratio of around 600% and impending debts to pay back, the Korean line is looking to gain KRW1.2trn ($1bn) via savings and asset sales, according to the Korea Economic Daily.
Older ships will be sold and redundancies are also a likely in the next four years in a bid to save KRW500bn, while asset sales this year could bring in another KRW500bn.
Hanjin is also looking at KRW220bn worth of 30-year bonds, with interest rates in excess of 9.5%. Treasury stock worth KRW37bn is another possibility while an office building in London is likely to be sold too.
Hanjin has around $405m of maturing debts to repay in the first half of this year.