Hanjin Shipping’s share price touched record lows this morning in Seoul, hitting KRW2,580 as the line announced plans for a creditor-led restructuring. The stock has plunged 64% in the past 12 months.
Hanjin Shipping has urgent repayments to make in the coming months and is weighed down by hundreds of millions of dollars in debt.
In a filing to the local stock exchange today, Hanjin Shipping said it would seek restructuring in order to “normalise” its management. Like compatriot Hyundai Merchant Marine (HMM), Hanjin will seek to get charter cuts from fellow owners as well as getting bondholders to push back maturity dates. Hanjin said it will file the restructuring application on Monday.
South Korea’s finance minister Yoo Il-ho said Thursday the nation’s shipping lines and shipbuilders face restructuring on the back of continued poor financial performances.