April 26, 2024
Industrials
Hanjin Shipping bondholders face huge losses
[THE INVESTOR] Bondholders of Hanjin Shipping, a South Korean shipping company that declared bankruptcy last week, could face up to 1.2 trillion won (US$1.05 billion) in losses, industry sources said Feb. 20.
According to the sources, Hanjin Shipping‘s privately placed debt offerings were tallied at 939 billion won, while its publicly placed debt sale amounted to 250 billion won. The state-run Korea Development Bank, other state-run debt guarantee agencies, and retail investors are hesitant to shoulder up to 1.2 trillion won worth of losses.
“The exact amount of losses can be calculated after a recovery rate is fixed, but it is highly likely for them to suffer huge losses,” said an industry source.
Hanjin Shipping, previously the nation’s largest shipping firm and the world‘s seventh largest, was put under court receivership in September last year, as its creditors, led by the KDB, rejected its self-rescue plan. Local shippers, including Hanjin, have been under financial strain due to falling freight rates stemming from an oversupply of ships and a protracted slump in the global economy.
(theinvestor@heraldcorp.com)
According to the sources, Hanjin Shipping‘s privately placed debt offerings were tallied at 939 billion won, while its publicly placed debt sale amounted to 250 billion won. The state-run Korea Development Bank, other state-run debt guarantee agencies, and retail investors are hesitant to shoulder up to 1.2 trillion won worth of losses.
“The exact amount of losses can be calculated after a recovery rate is fixed, but it is highly likely for them to suffer huge losses,” said an industry source.
Hanjin Shipping, previously the nation’s largest shipping firm and the world‘s seventh largest, was put under court receivership in September last year, as its creditors, led by the KDB, rejected its self-rescue plan. Local shippers, including Hanjin, have been under financial strain due to falling freight rates stemming from an oversupply of ships and a protracted slump in the global economy.
(theinvestor@heraldcorp.com)
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