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Hanjin Shipping gets creditors’ approval to restructure

Hanjin Shipping gets creditors’ approval to restructure
South Korea’s Hanjin Shipping has received approval from its creditor banks to proceed with a voluntary restructuring, following the shipowner’s application last Friday to restructure.

Hanjin Shipping said in a statement: “This approval by the creditor banks will play a crucial role in our discussions regarding alliance reorganisation and our business normalisation efforts such as charter rate reduction and etc.”

The company added that it will work closely with the creditors to achieve business normalisation in the shortest possible time.

Hanjin Shipping is part of the CKYHE alliance, which will be split following recent developments of new alliances that will see the departure of Cosco and Evergreen, leaving Hanjin Shipping, K Line and Yang Ming the option of reorganising their partnerships.

Financially-shaken Hanjin Shipping is weighed down by a debt of around KRW5.6trn ($4.93bn).

Korea Development Bank, the shipowner’s main shareholder, had been calling for a restructuring of the company before the board of directors finally decided last Friday to give up management control and enter into debt restructuring.