KDB hatches plan to keep Hanjin Shipping solvent

KDB hatches plan to keep Hanjin Shipping solvent

The Korea Development Bank (KDB) is in discussions with Hanjin Group to eek out a financial plan to give Hanjin Shipping enough cash to keep operating through to next year.

KDB, which last week went on the record saying it will cut its shipping and shipbuilding exposure on the back of public pressure, is willing to stump up around 20% of the KRW1.2trn ($1bn) the embattled Korean line needs to stay afloat through to 2017, so long as Hanjin Group comes up with the other 80%.

Hanjin Shipping is offloading assets as fast as possible to meet creditors’ demands. This includes overseas offices and terminals while 38 vessels – 20 boxships and 18 bulkers – will be returned to tonnage providers earlier than planned to cut the company’s chartering costs.

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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