[THE INVESTOR] The world’s largest container ship operator Seaspan has demanded Hanjin Group chairman Cho Yang-ho to dip into his private coffers to normalize Hanjin Shipping.
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Hanjin Shipping without a liquidity injection from controlling shareholder, the Cho family and the Korea Development Bank will have a very challenging road ahead,” Seaspan CEO Gerry Wang told Splash 24/7 in an interview on June 21. “It is a well run company which hit liquidity snags due to market conditions.”
Splash 24/7 is a Singapore-based shipping industry journal.
Wang added that Seoul must act now to shore up the nation’s maritime companies.
Seaspan chairman Gerry Wang
“I hope the Korean government is fully aware that this is not just a Hanjin Shipping issue - it is concerning their shipbuilding industry, their exports, their national shipping lines, their reputation as law-abiding OECD country,” the CEO said. “If I were the Korean government I would stand firm behind Hanjin Shipping right away.
Seaspan has seven boxships on lease to endangered Hanjin Shipping.
Hanjin has been in talks with Seaspan for a cut on chartering fees, but Wang said it was out of the question.
Hanjin‘s creditors that include Korea Development Bank have demanded the Korean line cut the costs of its chartered-in fleet by as much as 30% as a key first step in its restructuring. Failure to do so will result in court receivership.
Hanjin Shipping must fork over 890 billion won (US$769.2 million) to Seaspan by next March for the vessels it has chartered. From April 2017, it will have to pay 3 trillion won over a period of four years.
The news comes amid reports that Cho‘s family received about 1.1 billion won ($954,000) in dividends from Hanjin Kal although the company posted 205.2 billion won net loss in 2015.
Hanjin Kal is the holdings company of Hanjin Group that counts Korean Air among its subsidiaries.
By Kim Ji-hyun (jemmie@heraldcorp.com)