Korean Air to offer W150b aid to Hanjin Shipping
Published : 2013-10-30 20:18
Updated : 2013-10-30 20:18
Korean Air, the flagship unit of Hanjin Group, said Wednesday that its board members have agreed to inject 150 billion won ($140 million) into its cash-strapped sister company Hanjin Shipping.
According to the Seoul-based airline, the shipping affiliate’s shares owned by Hanjin Shipping Holdings would be used as collateral to secure the loan.
Hanjin Shipping has struggled with its cash flow since the shipping industry was hit hard by the 2008 financial crisis.
Korean Air said it could consider additional funding in the future if necessary through discussions with creditor banks.