Hanjin Shipping starts talks with creditors over debt maturity extension

[THE INVESTOR] Ailing Hanjin Shipping has begun negotiations with foreign lenders to extend the maturity of its debts, sources said on July 4.

According to local creditors, the firm started talks on the extension of repayment of 150 billion won (US$130 million) worth of debt that matures at the end of next year.

It is part of ship financing debts worth over 3.2 trillion won the company borrowed from foreign financial institutions to buy vessels.

The move comes as the shipping liner seeks to secure liquidity before it undergoes a creditor-led restructuring scheme.

The country’s shippers, including Hanjin Shipping, have been suffering from ballooning debts and mounting losses due mainly to a worldwide slump in the industry.

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