Hanjin extends due dates on bonds

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Hanjin extends due dates on bonds

Troubled Hanjin Shipping managed to extend the expiration date on 190 billion won ($161.8 million) in corporate bonds for another three months at the bondholders’ meeting held Friday at its headquarters in Yeouido, western Seoul.

It was the second such meeting since May 19, when the shipper was able to extend the expiration date of 35.8 billion won in corporate bonds for four months.

The bonds were originally due June 27 and could have put the company in a liquidity crisis, as it already lacks the cash to operate and owes 100 billion won in overdue charter fees.

According to creditors, the company will need some 1.2 trillion won in cash to operate for the next two years.

As Hyundai Merchant Marine continues to fulfill the requirements for approval of its self-rescue measures, Hanjin Shipping has been left playing catch-up. Its biggest remaining task is completing charter rate negotiations with foreign ship owners.

Hanjin Group Chairman Cho Yang-ho met Tuesday with Gerry Wang, the chairman of Hong Kong based container ship-leasing company Seaspan, to discuss charter rate discounts and other possible business cooperation.

Seaspan is one of the world’s largest ship owners with 120 container ships. Hanjin Shipping has borrowed seven.

“We received positive feedback from Gerry Wang,” Hanjin Shipping said in a statement after the meeting.

Approval of the shipper’s self-rescue plan was contingent on three requirements, including the charter fee negotiations.

It had to join a global shipping alliance, in this case one dubbed THE Alliance, which it accomplished May 19, and adjust debts held by individual bondholders, which has been successful thus far.

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]

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