AsiaFinance and Insurance

Hanjin Shipping looks to gain $1bn from savings and sales

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.

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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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