Hanjin shareholder throws stricken container company a lifeline

Published on: 23rd September 2016

Stranded cargo could soon be unloaded.

The largest shareholder of Hanjin Shipping Ltd has agreed to lend 60 billion won ($53.96m) to help unload cargo that has been stranded since the company collapsed late last month.

hanjin480Korean Air Lines said it would make the loan using Hanjin’s accounts receivable as collateral, even as media reports said the South Korean court handling Hanjin’s receivership doubted its ability to survive a restructuring. Shares in Hanjin dropped to a record low after the court comments were reported, which lent support to the view the company will slide into liquidation.

The airline’s loan is in addition to $40bn won provided by the Hanjin Group’s chairman, but the total is still short of the $173bn won Hanjin estimated in a court submission this month that it needed to unload all cargo. An estimated $14bn of cargo was initially trapped on Hanjin’s ships around the world.

Korean Air Lines did not say when the funds for unloading would be disbursed.

Hanjin must submit a rehabilitation plan to the court in December and the firm’s creditors will need to agree on that plan.


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