HANJIN Shipping, the world's eighth biggest container shipping line, will be spun off from its parent as part of the Hanjin Group's efforts to save the cash-strapped carrier.
HANJIN Shipping, the world's eighth biggest container shipping line, will be spun off from its parent as part of the Hanjin Group's efforts to save the cash-strapped carrier, reports Lloyd's List.
Hanjin Shipping Co posted an annual loss of KRW680.2 billion (US$631.4 million) in 2013, widening the previous year's loss of KRW638 billion.
Hanjin Shipping Holdings, which owns 36.5 per cent of Hanjin Shipping Co, will become two companies in June under a shareholder approved restructuring plan.
This enables the carrier to receive cash injections from the group under South Korean law.
The carrier has been profitable in only three out of the 19 quarters since 2009, noted Lloyd's List. In December, it announced it would raise KRW2 trillion through asset sales, loan and equity financing to repay KWR1.2 trillion in debt due this year.
As part of its efforts, the carrier agreed to sell part of its dry bulk and liquefied natural gas fleet to private equity firm Hahn for KRW300 billion.
Separately, a Hanjin Shipping Co spokeswoman told Lloyd's List that the restructuring would speed up the decision making, as proposals would not need approval from Hanjin Shipping Holdings.
Hanjin Shipping Co posted an annual loss of KRW680.2 billion (US$631.4 million) in 2013, widening the previous year's loss of KRW638 billion.
Hanjin Shipping Holdings, which owns 36.5 per cent of Hanjin Shipping Co, will become two companies in June under a shareholder approved restructuring plan.
This enables the carrier to receive cash injections from the group under South Korean law.
The carrier has been profitable in only three out of the 19 quarters since 2009, noted Lloyd's List. In December, it announced it would raise KRW2 trillion through asset sales, loan and equity financing to repay KWR1.2 trillion in debt due this year.
As part of its efforts, the carrier agreed to sell part of its dry bulk and liquefied natural gas fleet to private equity firm Hahn for KRW300 billion.
Separately, a Hanjin Shipping Co spokeswoman told Lloyd's List that the restructuring would speed up the decision making, as proposals would not need approval from Hanjin Shipping Holdings.
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