Hanjin Shipping shares plunge 12% on possible court receivership

With South Korea’s debt-ridden Hanjin Shipping Co. on the verge of entering court receivership, its shares plunged.

Shares of the shipper ended at 1,615 won on Friday, down 220 won, or 11.99 percent, from the previous session. The shares showed sharp decline in early trading and turned upward but the shares started to plunge again with the possible court receivership.

This owes much to investors’ jitters caused by rejected final self-rescue plan worth 500 billion won ($449 million) the troubled shipper submitted to its main creditor Korea Development Bank (KDB) on the previous day.

The value of corporate bonds of the shipper also plunged in the bond market. A bond in a maturity of five years issued in June 2012 was traded at 4,723.1 won, down 951.8 won, or 16.77 percent from the previous session. Another bond in a maturity of five years issued in September 2012 was traded at 5,001 won, down 998.9 won, or 16.65 percent.

Meanwhile, with the news that the self-rescue plan failed to meet the expectations of creditors, shares of Hanjin KAL Corp., the de facto holding company of Hanjin Group, ended at 17,900 won, up 600 won, or 3.47 percent from the previous session.

Copyright Ships & Ports Ltd. Permission to use quotations from this article is granted subject to appropriate credit given to www.shipsandports.com.ng as the source.