Hanjin Shipping Co. is expected to draw rollover in its debt facility with foreign lenders such as HSH Nordbank AG and Commerzbank AG, according to a government official.
Container ship Hanjin Korea - Image: John Kalucki
Hanjin Shipping, South Korea`s largest container line, is negotiating with foreign banks to push back maturity in loans worth some 500 billion won ($440 million) by three to four years and instead to pay extra 1.5-2 percentage points in interest.
Hanjin expect to finalize talks and bring the results to main creditor Korea Development Bank (KDB) as soon as next Wednesday, said the unnamed government official said.
Some 60 percent of the shipper’s loans of 2.5 trillion won to run its fleet secured with the vessels as collateral are owed to foreign institutions. The shipper will gain external debt relief until 2019, helping it better to normalize business.