South Korean government rules out financial aid for Hanjin Shipping

Embattled Hanjin Shipping can expect no financial aid from the government, South Korea’s financial regulator said at a time when the shipowner is going through restructuring, reports said.
The chairman of South Korea’s Financial Services Commission (FSC), Yim Jong-yong, confirmed that the government has no plan to offer financial aid to Hanjin Shipping, and that the shipowner is expected to resolve its own crisis or face court receivership.
“Hanjin Shipping is in talks over ship mortgage loans with 34 financial institutions at home and abroad in addition to charter rate negotiations and private debt rescheduling efforts,” he was quoted saying in a monthly press briefing.
The shipowner is projected to come under pressure from a cash shortage of up to KRW1.2trn in the next 18 months.
Hanjin Shipping has approached Seaspan seeking reduction in charter rates but the latter said it will not entertain the request.

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