South-Korean carrier Hanjin Shipping has been pressured by its creditors to generate more cash in order to handle the rising cash shortage at the company, according to the Korea Herald.
The shipping carrier has been reported as proposing around US$353 million in stock sales, however, creditors want more than $616 million.
Over the next 18 months, more than $1 billion will be needed in order to resolve its financial debts.
This follows news that the shipping line had had a request declined by Seaspan for lower charter rates, which was needed to allow the carrier to lower its debts.
Prior reports hinted at the Korean government merging both Hanjin and fellow South Korean carrier Hyundai Merchant Marine (HMM), if the two could normalise their management structures.
However, this plan seems to be unsuccessful as HMM recently announced that it will be joining the 2M alliance with Maersk and MSC.
Also, Hanjin is poised to join THE Alliance in April, 2017, which will see it be part of a global network of ships with a total capacity of more than four million TEU.