Following news that ailing South Korean carrier Hanjin Shipping could be facing bankruptcy, the company is now struggling to produce a self-rescue plan, as the deadline to raise more than US$1 billion in the next year starts to loom, according to The Korea Herald.
Hanjin was asked on August 18, 2016 to submit a rescue plan after it reportedly failed to meet its initial deadline of August 13.
Lee Dong-geol, Chairman of the Korea Development Bank warned that if the carrier fails to come up with a ‘substantial’ self-rescue plan, a court receivership is inevitable.
PTI previously reported that Hanjin is headed for liquidation, unless it is able to raise $1.1 billion in the next year.
Yim Jong-yong, Chairman of the Financial Services Commission previously said: “If it cannot combat liquidity woes on its own and fails to normalise business, the shipping company will be dealt according to principles.”
The most recent update revealed that the carrier was looking into the sale of its terminal at the Port of Long Beach, which could provide more than $90 million.