Struggling South Korean conglomerate Hanjin Shipping may have caught a break this week as bondholders have agreed to extend the maturity of debts by four months, according to a report from Yonhap news agency.
Bondholders of struggling South Korean conglomerate Hanjin Shipping have agreed to a debt repayment extension, according to a report from Yonhap news agency.
The bondholders approved a proposal to extend the maturity of 36 billion won (U.S. $30 million) worth of debt for an additional four months.
The extension is part of a larger debt restructuring plan aimed at revitalizing Korea’s biggest ocean carrier.
As part of the plan, Hanjin is must also get vessel owners to agree to cut containership charter rates by about 28 percent or the company could be placed in receivership, much like fellow troubled Korean line Hyundai Merchant Marine (HMM). Both are fighting to stay afloat amid mounting losses and growing debt caused by rampant overcapacity and plummeting freight rates in the ocean shipping industry.
Report: Hanjin bondholders grant debt repayment extension
