Hanjin Heavy Industries chief loses board seat

The chief of Hanjin Heavy Industries & Construction, a midsized shipyard, was removed from the board Friday and lost his control over the company.

According to Hanjin Heavy, shareholders approved a proposal to name a new president and CEO to replace Cho Nam-ho.

Cho is the younger brother of the disgraced Hanjin Group Chairman Cho Yang-ho.

Cho said earlier he would step down from his posts, taking responsible for the shipyard’s dismal business performance.

In February, Hanjin Heavy reached an agreement on debt rescheduling for its Philippine affiliate, including a debt-for-equity swap with Philippine lenders.

The shipyard and its affiliate have been suffering from a drop in new orders amid the protracted slump in the global shipbuilding industry.

In 2004, Hanjin Heavy built the shipyard in the Philippines to boost its overall competitiveness.

The Subic shipyard’s assets are valued at 1.84 trillion won ($1.63 billion), and it employs 4,000 people.

Hanjin Heavy has been undertaking a massive restructuring since 2016 by selling non-core assets. So far, the shipyard has met 65 percent of the 2.1 trillion won restructuring scheme proposed by its creditors.

Yonhap