[THE INVESTOR] The main creditor of Hanjin Shipping expressed dissatisfaction with the cargo container carrier’s self-rehabilitation measures, increasing the possibility the financially troubled firm could put under court receivership.

“There was not much change from previously submitted self-rescue plans,” said Jeong Yong-seok, vice governor of restructuring at Korea Development Bank, the main creditor of Hanjin Shipping.

On Aug. 25, the embattled cargo container carrier mapped out 500 billion won (US$449 million) worth of liquidation measures, but the firm’s commitment to tide over a deepening cash shortage seemed insufficient to satisfy creditors. 



“Hanjin Shipping needs some 1 (trillion) to 1.3 trillion won to pay back debt and run its business, which means creditors need to inject at least 600 billion won to make it stay afloat,” Jeong said.

Under the plan, Hanjin Shipping’s largest shareholder Korean Air will give its subsidiary a 400 billion won infusion to help it meet its liquidity goal by issuing new shares worth 200 billion twice by next year.

The KDB official said the creditors plans to decide whether to approve the new plan by Aug. 30.

Final agreement requires the approval of 75 percent of creditors, otherwise the firm will be placed under a court-led restructuring.

By Park Han-na (hnpark@heraldcorp.com)