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Seaspan relents, but creditors say 'time's up,' sending Hanjin to bankruptcy
SOUTH KOREA's Hanjin Shipping creditors have rejected the troubled company's latest funding plans, nudging South Korea's largest container operator closer to bankruptcy, reports the Wall Street Journal.
State-run Korea Development Bank (KDB), its main creditor, and other local lenders on Tuesday said Hanjin's self-rescue packages fell short of their demands, sending the company's shares down as much as 29 per cent.
"A creditor-led restructuring will end now. The company will have to find its own way to survive," said a KDB official.
A Hanjin spokeswoman said the company hasn't been officially notified of the decision and has no comment for now.
The day started hopefully with news that after a long period of refusal, Hong Kong's Gerry Wang who runs Seaspan would relent and give Hanjin a break on its massive debt from ship charter fees.
But the rest of the creditors turned a firm thumbs down on any extension. They said Hanjin would need at least KRW1 trillion in short-term liquidity to pay back maturing debt and cover arrears in payment to chartered shipowners as well as funding for operations.
State-run Korea Development Bank (KDB), its main creditor, and other local lenders on Tuesday said Hanjin's self-rescue packages fell short of their demands, sending the company's shares down as much as 29 per cent.
"A creditor-led restructuring will end now. The company will have to find its own way to survive," said a KDB official.
A Hanjin spokeswoman said the company hasn't been officially notified of the decision and has no comment for now.
The day started hopefully with news that after a long period of refusal, Hong Kong's Gerry Wang who runs Seaspan would relent and give Hanjin a break on its massive debt from ship charter fees.
But the rest of the creditors turned a firm thumbs down on any extension. They said Hanjin would need at least KRW1 trillion in short-term liquidity to pay back maturing debt and cover arrears in payment to chartered shipowners as well as funding for operations.
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