Hanjin Shipping has had its latest self-rescue funding plans rejected by its creditors, including its main creditor, the State-run Korea Development Bank, reported the Wall Street Journal.
The company’s shares have dropped by as much as 29% as creditors said the self-rescue plan falls short, and the largest container handling operator in Korea heads towards liquidation.
PTI reported recently that on Thursday August 25, 2016 Hanjin Shipping had submitted what they called a ‘stronger self-rescue plan’, which included an increase in sales of assets, which fell short of the US$1.1 billion needed to save them from bankruptcy.
An official at the Korea Development Bank said: “A creditor-led restructuring will end now. The company will have to find its own way to survive.”
Korean shipping and shipbuilding have seen a slump in the industry recently, with Samsung Heavy and Daewoo Shipbuilding struggling to counteract their 2016 losses.
The South Korean President has said she believes the shipbuilding industry must modernise and innovate to save itself from the recent downturn in the market.
