Main Creditor Bank News

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…

Creditors of South Korea's Daewoo Shipbuilding and Marine Engineering Co. will pour 4.2 trillion won about (US$3.68 billion) into the ailing shipyard to help it get back on track, the main creditor bank said, according to South Korea's (Yonhap) News Agency. The massive rescue package offered by state-run Korea Development Bank — which owns a controlling 31.5 per cent stake — and Export-Import Bank of Korea, includes new loans, a rights offering and debt-to-equity swaps. “In return for this rescue package, we’ll implement rigorous restructuring at the shipbuilder, including deep job cuts and sale of nonprofitable businesses,” said KDB, Daewoo’s largest shareholder and main creditor, in a statement.

Creditors of the ailing shipbuilder agree to provide STX Offshore with (US$540 million) in emergency loans. The news is cited as coming from the main creditor bank and is reported by the Yonhap News Agency. STX Offshore, the shipbuilding unit of STX Group, a South Korean shipping and shipbuilding conglomerate, has been suffering a credit crunch as demand for new ships has fallen sharply in the past few years. Source: Yonhap News Agency