[THE INVESTOR] On news that ailing Hyundai Merchant Marine is likely to join the prestigious vessel-sharing 2M Alliance, all the attention is now focused on its bigger local rival Hanjin Shipping, to see whether the shipper can normalize its business to stave off bankruptcy.

Hanjin Shipping, which joined a new alliance named The Alliance in May along with five shippers including Germany’s Hapag-Lloyd, Japan’s Nippon Yusen Kaisha and Taiwan’s Yang Ming, took the early lead on the industry-wide restructuring program for debt-ridden shippers. 

However, it is facing many hurdles in its quest to receive funds for improving finances.

According to reports, the shipper has not made any progress in its negotiations with the owners of its chartered ships to cut leasing rates, a core condition for its debt revamp plan. Hong-Kong based container ship-leasing company Seaspan, which leased seven ships to Hanjin, said it won’t accept the charter rates cut request. Its CEO Gerry Wang indicated that he would “withdraw the tonnage than agree to any concession” via London-based journal Lloyd’s List.

Also, Hanjin is significantly behind in its charter lease payments to both Seaspan and Greek charter company Navios Maritime Partnership, which was impounded for three days in South Africa for unpaid fees worth 100 billion won ($87 million).

Though the shipper’s bondholders approved to extend the maturity of 35.8 billion won and another 190 billion won debts to September, the company faces 400 billion won maturity this year and another 700 billion won debt next year.

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