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Cash-strapped Hanjin Shipping Co., under growing pressure from its creditors to secure more money to tide over a deepening cash shortage, submitted a stronger self-rescue plan, which may include the sales of more assets and a capital infusion by its major shareholders, industry sources said Thursday.
But details of the self-rescue scheme were not immediately known.
According to the sources, Hanjin Shipping, the country's No. 1 shipping line, initially proposed raising some 400 billion won ($353 million) via stock sales to its affiliates, but creditors wanted the shipping firm to jack up the figure to some 700 billion won.
Hanjin Shipping needs some 1.2 trillion won over the next 18 months to pay back debt and do business. The company, however, has claimed that some 400 billion won would be enough if it succeeds in cutting charter rates and postponing debt repayments.
But the creditors have asked the shipper to do more to ensure its survival.
The sources said the self-rescue plan may include how to secure more cash and the results of its negotiations with owners of its chartered vessels to cut leasing rates. The fresh self-restructuring plan may call for the shipper to secure up to 600 billion won by selling overseas terminals and non-core assets, they said.
Hanjin Shipping's creditors may gather on Friday at the earliest to decide whether to approve the new plan.
Hanjin Shipping, currently under a creditor-led restructuring scheme, has made little progress in its negotiations with owners of its chartered fleet to cut leasing rates, one of the key prerequisites set out by creditors to avert court receivership.
The shipping line is also seeking to postpone the repayment of 2.5 trillion won borrowed to buy container ships and other vessels by up to three years, which would help the shipper save billions of won.
As of end-2015, the company's total debt reached 5.6 trillion won.
In 2015, Hanjin Shipping posted a net profit of 3 billion won, a turnaround from a net 423 billion won loss the previous year. (Yonhap)
But details of the self-rescue scheme were not immediately known.
According to the sources, Hanjin Shipping, the country's No. 1 shipping line, initially proposed raising some 400 billion won ($353 million) via stock sales to its affiliates, but creditors wanted the shipping firm to jack up the figure to some 700 billion won.
Hanjin Shipping needs some 1.2 trillion won over the next 18 months to pay back debt and do business. The company, however, has claimed that some 400 billion won would be enough if it succeeds in cutting charter rates and postponing debt repayments.
But the creditors have asked the shipper to do more to ensure its survival.
The sources said the self-rescue plan may include how to secure more cash and the results of its negotiations with owners of its chartered vessels to cut leasing rates. The fresh self-restructuring plan may call for the shipper to secure up to 600 billion won by selling overseas terminals and non-core assets, they said.
Hanjin Shipping's creditors may gather on Friday at the earliest to decide whether to approve the new plan.
Hanjin Shipping, currently under a creditor-led restructuring scheme, has made little progress in its negotiations with owners of its chartered fleet to cut leasing rates, one of the key prerequisites set out by creditors to avert court receivership.
The shipping line is also seeking to postpone the repayment of 2.5 trillion won borrowed to buy container ships and other vessels by up to three years, which would help the shipper save billions of won.
As of end-2015, the company's total debt reached 5.6 trillion won.
In 2015, Hanjin Shipping posted a net profit of 3 billion won, a turnaround from a net 423 billion won loss the previous year. (Yonhap)
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