Creditor banks of Hanjin Shipping will decide next week whether to restructure the company’s debt and initiate a corporate rehabilitation program, local reports said Friday. 

Seven lenders, led by state-run Korea Development Bank, held a meeting Friday afternoon and agreed to decide by May 4, Yonhap News reported, citing unnamed sources from the banks. 

The seven are KDB, Export-Import Bank of Korea, Nonghyup, KB Kookmin, KEB Hana, Woori and Pusan Bank. 

Korea Credit Guarantee Fund, a state-run loan guarantee provider which holds 400 billion worth of Hanjin Shipping debt, decided to stay out of the debt-relief talks. 

Facing a 5.6 trillion won wall of debt, Hanjin Shipping on Monday submitted an application for the restructuring of bank debt to the main creditor KDB. KDB, however, asked the container carrier to supplement the request a more detailed plan of self-rescue. 

“The KDB requested Hanjin to submit more details about how it plans to negotiate a reduction in ship-leasing fees and secure operating profits to last through the creditor-led restructuring, if it happens,” a KDB official said.
Hanjin Shipping said it would submit a new self-rescue plan by May 2. 

By Lee Sun-young (milaya@heraldcorp.com)