[THE INVESTOR] South Korean banks’ credit exposure to cash-strapped Hanjin Shipping is estimated at 1.02 trillion won (US$915 million), industry data found on Sunday. But sources say the banks have already set aside sufficient provisions against the loans.
The main creditor Korea Development Bank has credit exposure of 660 billion won to the nation’s largest shipping company, followed by KEB-Hana Bank with 89 billion won, NH Nonghyup with 85 billion won, Worri Bank with 69 billion won, KB Bank with 53 billion won and the Korea Export-Import Bank with 50 billion won.
The KDB-led creditors will decide whether to put Hanjin Shipping under receivership by Aug. 29, as the shipper’s new self-rescue scheme falls short of expectations.
On Thursday, Hanjin Shipping, under growing pressure from its creditors to secure more money to tide over a deepening cash shortage, submitted a stronger self-rescue plan. The new scheme includes sales of more assets and a capital infusion by its major shareholders.
But the creditors led by the KDB said the fresh self-restructuring measure is just shy of their demand.
According to the KDB, Hanjin Shipping said it would secure 400 billion won by selling stocks to its affiliate Korean Air. Hanjin Shipping needs some 1.3 trillion won over the next 18 months to pay back debt and run its business. The company, however, has claimed that some 400 billion won will be enough if it succeeds in cutting charter rates and postponing debt repayments.
(
theinvestor@heraldcorp.com)
