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HHI gets backing from seven banks for refund guarantee

South Korea’s Hyundai Heavy Industries (HHI) has gotten backing from seven local banks for refund guarantee to allow the shipyard to clinch shipbuilding projects, reports said.

Lee Hong Liang, Asia Correspondent

September 20, 2016

1 Min Read
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The seven banks, which included HHI’s main creditor KEB Hana Bank, are expected to issue the refund guarantee for the shipbuilding group by early October, The Korea Herald reported.

A refund guarantee issued by a shipyard’s bank is important for a vessel purchaser when ordering a newbuilding. In the event of a default by the yard, the refund guarantee will cover the vessel purchaser with the money already paid.

HHI is currently going through a restructuring as it struggles to make operating profits and increase liquidity. The group’s restructuring plan involved disposing of stakes in various subsidiaries, selling of certain assets, reducing workforce and cutting salaries.

About the Author

Lee Hong Liang

Asia Correspondent

Singapore-based Lee Hong Liang provides a significant boost to daily coverage of the Asian shipping markets, as well as bringing with him an in-depth specialist knowledge of the bunkering markets.

Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and had the ability to write hard news and featured stories.

 

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