Bondholders of Hanjin Shipping, Korea’s biggest container carrier, agreed to extend the maturity of debts for four months, in a major step to help the company avoid bankruptcy.

During a meeting on Thursday, bondholders gave the nod to the firm’s proposal to roll over 35.8 billion won ($30 million) in bonds due next week.

On May 5, creditors of the Cash-strapped Hanjin Shipping agreed to offer financial assistance to the company and initiate a corporate rehabilitation program with conditions attached.

The debt maturity extension was part of conditions that include a cut in charter rates and an inclusion in a global shipping alliance.

“Upon this approval, the company will put an utmost effort to move toward normalization,” a Hanjin Shipping’s official said.

Completing negotiations with foreign ship owners over a cut in charter rates is the last remaining hurdle for the shipper to meet creditors’ requirements.

The company reached an agreement to set up a new alliance named The Alliance along with five shippers including Germany’s Hapag-Lloyd, Japan’s NYK and Taiwan‘s Yang Ming last week.

The shippers have been suffering from ballooning debts and mounting losses due mainly to a worldwide slump in the industry.

Hanjin Shipping swung to a net loss of 261 billion won on a consolidated basis in the first three months of this year.

Its revenue fell 25.1 percent on-year to 1.5 trillion won, as it swung to an operating loss of 115.7 trillion won.

By Park Han-na (hnpark@heraldcorp.com)