[THE INVESTOR] Hanjin Shipping has yet to clinch a deal for cutting charter fees as part of its debt restructuring plan, the company said on July 15.

“At the moment, we haven’t reached an agreement,” the company said in a statement, adding it is still negotiating with 22 foreign ship owners. 


The remark comes after a local media report on July 14 that Hanjin Shipping has almost reached a deal for cutting its leasing rate by 27-28 percent from the current 2.6 trillion won (US$ 2.29 billion).

If the deal is clinched, it will save the ailing shipper up to 700-720 billion won over the next 3 1/2 years, the report said.

Hanjin Shipping, which owes 5.6 trillion won to 10 banks, has to cut charter rates as part of a requirement set by the creditors to receive funds and avoid court receivership.

The company announced its plans to reduce the rate by 30 percent by the Aug. 4 deadline from the major lessors such as Seaspan from Canada, Danaos from Greece and Conti from Germany.

Despite its negotiation efforts, Hanjin is still facing hurdles in its quest to secure funds for improving finances. The company is significantly behind its charter lease payments, while it also faces 400 billion won of debt maturing this year, and another 700 billion won in 2017.

By Ahn Sung-mi (sahn@heraldcorp.com)