Hanjin Group chairman Cho Yang-ho was reported by the Korea Times to have given up his management control and the board decided to apply for creditor-led restructuring plan. The government and main shareholder Korea Development Bank (KDB) had been calling for a restructuring of the company.
"Board directors of Hanjin Shipping decided to give up their management control for debt restructuring," said a KDB spokesman was quoted as saying.
Hanjin Shipping plans to submit an application to its creditors on Monday.
The Korean shipping line has KRW5.6trn ($4.93bn) in debt.
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