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HHIC to get additional funds from creditors for restructuring

HHIC to get additional funds from creditors for restructuring
South Korea’s Hanjin Heavy Industries & Construction (HHIC) is set to receive an additional KRW120bn ($103.1m) from its creditors to push on with a restructuring process, reports said.

HHIC’s creditors, led by Korea Development Bank (KDB), have earlier pumped in KRW130bn for the cash-strapped shipyard.

A KDB spokesperson was quoted by Yonhap as saying that the Busan-based shipbuilder is facing difficulty to turnaround due to the lack of new orders and delayed sale of non-core assets.

The spokesperson added that HHIC has few remaining order backlogs for commercial ships such as containerships and drillships by end-2017, so the creditors will have the yard to focus on building special-purpose vessels such as patrol boats in the coming years.

HHIC is not the only Korean yard facing troubles, as the country’s big three yards – Hyundai Heavy Industries (HHI), Samsung Heavy Industries (SHI), and Daewoo Shipbuilding & Marine Engineering (DSME) – are also pressed by their creditors to carry out restructuring.

Other medium-sized Korean yards such as STX Offshore & Shipbuilding and SPP Shipbuilding are also facing creditor-led restructuring moves.