Hanjin Group News

Two Chinese shipbuilding companies have expressed intent to invest in the largest Philippine shipyard, debt-riddled Hanjin Heavy Industries and Construction Philippines, the Department of Trade Industry (DTI) said.Drowning in debt,  the Philippine business of the Hanjin Group of South Korea, has asked the government for help in search of an investor who would take over the business and save the troubled shipbuilder.Philippines Rodrigo Duterte administration has stepped in to help save the troubled investor in Subic.According to local media reports, which quoted Trade Undersecretary and Board of Investments (BOI) Managing Head Ceferino Rodolfo, two Chinese firms contacted the Board.“They’re interested in the shipbuilding industry in general ...

The former chairwoman Choi Eun-young (55) of the now-defunct Hanjin Shipping was jailed 18 months for insider trading, reports Yonhap. According to the report the Seoul Central District Court found Choi  guilty of selling off her family-stake in the shipping company days before it declared a court-led debt restructuring plan. She was also fined with USD 1.09 million. The court said, although her charges are grave enough to deserve a heavy punishment, it considered that the stake selling does not appear to have been meticulously planned out and that Choi already donated 10 billion won to bear the responsibility for her misdeed. Choi was indicted in December last year for unloading the stakes held by her and her two daughters, taking advantage of the undisclosed information.

The new container carrier SM Line, owned by South Korean Samra Midas (SM) Group, will launch its first service in the second week of March. The shipper which took over Hanjin's service network between Asia and the US, will also take over several of Hanjin's terminals in South Korea. According to a report in Pulse, it will set sail on its maiden voyage on March 8 along the East and South China Sea with 1,000 twenty-foot equivalent (TEU) container onboard. The fledgling shipper’s first cargo service will depart Busan port in southern Korea and stop at China, Thailand, and Vietnam, according to shipping industry sources on Sunday. The carrier’s first full service in its Asia-North America route - leaving Busan and arriving at Long Beach Terminal in California, U.S - is scheduled on April 21.

The Seoul Southern District Prosecutors’ Office said Choi Eun-young,  the former chairman and former CEO of Hanjin Shipping, has been indicted on charges of insider trading. According to Yonhap, the prosecution alleged that Choi sold stock in Hanjin when she learned of the carrier's impending collapse, several days before the firm applied for a restructuring program and made its situation known to the public. The stock sale was completed a few days before Hanjin Shipping, long troubled by an industry slump and ballooning losses, decided to apply for a creditor-led debt revamp and a self-rescue program. Hanjin, one of the world’s leading container carriers, filed for court receivership in late August amid multi-billion-dollar debts.

Hanjin's failure largest ever among container shippers; collapse has disrupted global trade networks. The collapsed Hanjin Shipping Co Ltd could not compete against global rivals that were supported by their governments, the chairman of its parent firm told a South Korean parliamentary hearing on Tuesday. The world's seventh-largest container shipper sought court receivership in late August after its creditors led by a state bank halted further support, stranding $14 billion in cargo and sending waves through global trade networks. "Hanjin Shipping lost the game of chicken played among large shippers," Hanjin Group chairman Cho Yang-ho told the hearing.

Korea Development Bank has offered a conditional credit line of 50 billion won ($45 million) to help ease supply-chain disruptions caused by the collapse of Hanjin Shipping Co, says a report in Reuters. An estimated $14 billion of cargo was trapped on Hanjin ships when the world's seventh-largest container carrier collapsed late last month, creating havoc ahead of the crucial holiday shopping season. The credit line is to be used only when all available funds from the nation’s biggest container mover, top shareholder Korean Air Lines, Hanjin Group's chairman and a former Hanjin Shipping chairwoman meant to help unload cargo are used up, the state-owned bank said in a statement.

Parent group transfers $36 mln to troubled shipper. It may cost over $150 mln to unload stranded cargo. The chairman of Hanjin Group transferred 40 billion won ($36 million) to Hanjin Shipping on Tuesday to help unload cargo stranded on the troubled shipper's vessels, a spokesman said, but regulators warned securing further funds could take "considerable time". The parent of Hanjin Shipping pledged last week to raise 100 billion won to help rescue cargo in the wake of the collapse of the world's seventh-biggest container shipper, including the 40 billion won from Chairman Cho Yang-ho. About $9 million pledged by Choi Eun-young, a former chairwoman of Hanjin Shipping, has also come in, the shipper said.

A Hanjin Shipping Co Ltd vessel is finishing unloading in California and scheduled to leave port on Monday, shipping industry officials said, as shareholders and executives associated with the South Korean firm pledged funds to help resolve the turmoil created by its collapse. The Hanjin Greece docked in Long Beach on Saturday after a U.S. bankruptcy court granted it protection and terminal operators agreed to take it. Truck drivers probably will begin moving containers from the Greece on Monday while the vessel prepares to leave late in the day for the Port of Oakland, said Teamsters spokeswoman Barbara Maynard and shipping traffic controllers.

Korean Air Lines, the biggest shareholder of Hanjin Shipping, has approved a plan to provide a loan of 60 billion won ($54.16 million) to the troubled shipper. The support will be offered on condition of securing Hanjin Shipping's Long Beach Terminal as collateral, Korean Air said. Hanjin Group has pledged to raise a total of 100 billion won ($90 million) in funds to help rescue cargo that is stranded at sea following the failure of Hanjin Shipping, the world's seventh-largest container carrier. Out of the 100 billion won, Hanjin Group Chairman Cho Yang-ho will raise 40 billion won from private funds next week. ($1 = 1,107.7300 won) (Reporting by Hyunjoo Jin; Editing by Himani Sarkar)

As most of  Hanjin Shipping Co's assets are stranded at sea or in ports world-wide, the the South Korean company is seeking to protect assets world-wide. Hanjin Shipping’s government-backed creditors are ready to provide the collapsed carrier with roughly 100 billion won ($90.60 million) of loans if Hanjin’s parent provides collateral, Fortune reports South Korean government officials as saying. Hanjin's collapse has left much of its fleet stranded at sea, unable to dock over fears that vessels be seized by creditors. According to BBC Seoul could give 100bn won ($91m; £68m) or more in long-term funding at low interest rates if Hanjin provided the necessary collateral.

A bankruptcy would be biggest ever for a container shipper. Hanjin Shipping Co's banks are halting support for the South Korean company, its lead creditor said, making it likely the nation's largest shipper is headed for bankruptcy as it is dragged down by a deep global industry downturn. South Korea's shipbuilders and shipping firms, which underpinned decades of economic growth, are reeling under debt after racking up losses amid a downturn caused by overcapacity and sluggish trade, forcing state banks to pick winners. Hanjin's lead creditor, state-run Korea Development Bank (KDB), said on Tuesday inadequate financial support from parent Hanjin Group to an ongoing debt restructuring plan forced creditor banks to pull the plug.

South Korea’s Hanjin Shipping is planning on submitting a self-rescue plan to creditors this week to stave off bankruptcy by Aug. 25, reports Korea Herald quoting local media. According to the shipper, the plan includes details on securing funds from its parent Hanjin Group and cutting charter fees from foreign vessel owners. According to Pulse, Hanjin Group is expected have stronger units like Korean Air help out their troubled affiliate Hanjin Shipping through new share purchase and negotiate for cut in charter fees to up to 28 percent to normalize the country’s largest cargo carrier. The group is fine-tuning a new rescue package for Hanjin Shipping to submit the plan to state-run Korea Development Bank and other creditors within this week.

Cash-strapped Hanjin Shipping Co. sources say that the negotiations with tonnage providers for lower rates are undergoing, but wouldn't say much else. According to Korea Herald, the country's No.1 shipping line has come under growing pressure from its creditors to secure more money to tide over a deepening cash shortage. Hanjin Shipping has proposed raising some 400 billion won ($353 million) via stocks sales to its affiliates, but creditors want the shipping firm to jack up the figure to some 700 billion won. Meanwhile, there are reports that Korean Air, a Hanjin Group affiliate, is likely to help raise liquidity of up to 700 billion won (US$615.22 million) for ailing Hanjin Shipping. Hanjin Shipping needs some 1.2 trillion won over the next 18 months to pay back debt and do business.

State-run Korea Development Bank and other creditors are expected to extend their conditional debt rescheduling program for Hanjin Shipping Co. to stay afloat, reports Korea Herald. This move will give the struggling shipping company enough time to cover liquidity shortage on its own. The ailing company still needs to raise about 1 trillion won ($875 million) to keep afloat. According to sources, KDB may extend the initial Aug. 4 deadline by a month  until early September. It is likely for the main creditor bank to vote for allowing more time for the shipper’s preparation, a person familiar with the situation said. It is completely up to Hanjin Group to decide but the most practical way for now is the container carrier securing the additional funds through Hanjin Group…

South Korea's largest shipping line Hanjin Shipping has sold its entire 21.3% stake in Tan Cang Cai Mep International Terminal (TCIT)  in Vietnam to its affiliate in order to secure liquidity. The financially-troubled shipping line will raise about  $33m from the sale. The move came after the government and creditors, led by state-run Korea Development Bank, pushed Cho Yang-ho, the chairman of Hanjin Group, to pour more cash to the ailing shipping arm of the company. TCIT is a joint venture company of Saigon Newport Corporation with Hanjin, Mitsui OSK Lines and Wan Hai as partners. Cai Mep in the Mekong Delta is a huge complex of terminals built in the past 12 years. Almost all the terminals in the area have failed to make money.

Prosecutors on Sunday sought the arrest warrant of the ex-chairman of Hanjin Shipping, who has been hit with insider trading charges, says Yonhap. Choi Eun-young is specifically charged with violating the Financial Investment Services and Capital Markets Act, according to prosecutors probing the case at the Seoul Southern District Prosecutors' Office. The 54-year-old and her two daughters allegedly sold their stockholding in the Korean line for about  about 1 billion won (US$857,632) in losses days ahead of the company announcing a resturcuting, with prosectors convinced the sell off came from a tip off from sources within the shipping line. Choi denied the charges during a questioning by prosecutors last week, saying she just sold the stocks to pay back her debts.

South Korea’s largest container operator by capacity Hanjin Shipping's creditors are expected to approve a corporate rehabilitation program for the struggling container line, local media reports suggest. Creditor banks of cash-strapped Hanjin are likely to give the ailing container carrier a chance to avoid bankruptcy by approving a corporate rehabilitation program, reports Korea Herald. Seven lenders, led by state-run Korea Development Bank, are expected to allow the country’s No. 1 shipper to undergo rehabilitation Wednesday, after the company submitted a formal request to restructure its debt on April 29, according to sources. Facing a 5.6 trillion won ($4.9 billion) wall of debt…

A report in WSJ says that Hanjin Shipping Co has applied for a creditor-led debt restructuring to avoid bankruptcy, reviving talk of a possible merger with rival Hyundai Merchant Marine Co. (HMM). It could be merged as a part of the government-led restructuring of ailing industries and companies, according to government sources. Both Hanjin Shipping Co. and Hyundai Merchant Marine Co. (HMM) are in hot water, but they are different from each other in a debt structure. Unlike HMM, Hanjin Shipping has a lot of non-bank debt, which makes it difficult for the main creditor Korea Development Bank (KDB) and other creditor banks to manage the company under a creditor-led restructuring program.

South Korea’s Hanjin Shipping Co. Ltd will work with lenders to restructure debt after years of weak demand resulted in losses and cash erosion, reports Bloomberg. The board of Hanjin Shipping decided to file for receivership and give creditors authority to manage the company, bowing to calls from the government and its main creditor Korea Development Bank (KDB) which asked Cho to accept heavy restructuring of the company. "Board directors of Hanjin Shipping decided to give up their management control for debt restructuring," said a KDB spokesman. Having been faced with an outstanding debt of USD 406 million due in the first half of this year, the company is now aiming to improve the financial structure and “normalize” its management.

Hanjin Group opened its creative economy innovation center in Incheon on Wednesday, hoping to develop the city into a distribution hub of Northeast Asia utilizing advanced shipping technologies. As part of the center, Hanjin created a fund worth 159 billion won ($138 million), with about 94 billion won to be used for loans to companies starting smart distribution businesses. President Park Geun-hye, Hanjin Group Chairman and CEO Cho Yang-ho and Incheon Mayor Yoo Jeong-bok attended the opening ceremony, held at the center’s location in Songdo, Incheon. “The government hopes the center will successfully combine Incheon’s excellent distribution…

The Port of Seattle Commission approves lease extension with Total Terminals International (TTI), a J/V subsidiary of Hanjin Shipping & Terminal Investment Limited (TIL). The ten-year lease extension will secure continued volume and revenue at Terminal 46 for the next 13 years, through 2025. Hanjin Shipping, headquartered in Seoul, South Korea, is a subsidiary of the Hanjin Group, a large transportation conglomerate that includes Korean Air Lines. Hanjin is the largest container line in Korea and the 8th largest worldwide.

Hanjin Shipping said it aimed to generate $410 million in operating profit this year, up from an estimated $355 million last year. Hanjin, a shipping unit of South Korea's Hanjin Group, expects sales of $4 billion in 2001, up 10.7 percent from last year's, the company said in a statement. The company said figures in Korean won were unavailable. - (Reuters)

Hanjin Shipping said it saw a net loss of 74.5 billion won ($59.3 million) in 2000 against a 36.8 billion won net profit in 1999. A Hanjin official said the depreciation of the won against the dollar last year was behind the loss, costing the company around 260 billion won. The won shed 11 percent against dollar in 2000. Hanjin, a shipping unit of South Korea's Hanjin Group, posted a recurring loss of 97.5 billion won last year, against a 61.4 billion won profit a year ago, with the won depreciation again a major factor. Before accounting for the effects of the won depreciation, the recurring profit amounted to around 150 billion won.