Hanjin Shipping, South Korea’s largest carrier, is headed for liquidation unless it can recover its finances following the latest debt relief programme, Maeil Business South Korea reports.
In a press conference on Wednesday August 10, 2016, Yim Jong-yong, Chairman of the Financial Services Commission, said: “If it cannot combat liquidity woes on its own and fails to normalise business, the shipping company will be dealt according to principles.”
$1.1 billion is required to turn the company around, and it has to be done in the next year to avoid bankruptcy.
With the South Korean government refusing any bailout plan, Hanjin is reliant on raising funds and through its creditors.
In July, 2016, PTI reported that creditors were putting pressure upon the carrier company to turn around its revenue.
HMM recently announced that it will be joining an alliance with Maersk and MSC; Hanjin was predicted to join in April, 2017, but this is impossible at present time due to financial turmoil.