South Korea-based Hanjin Shipping reached an agreement with creditors who have agreed to offer financial assistance to the company and initiate a corporate restructuring program.
Creditor banks, led by state-run Korea Development Bank, approved Hanjin’s debt restructuring proposal at a meeting on Wednesday.
The conditions for the bailout include reduced charter rates that Hanjin pays out to foreign shipowners, retaining a global alliance membership and signing a debt restructuring agreement with bondholders.
The agreement comes days after Hanjing Shipping submitted a revised self-rescue measure to creditors on 2 May 2016.
The creditors plan to give a three-month maturity extension of principal and interest starting and roll out debt refinancing measures by hiring accounting firms.
The company plans to finalize negotiations with 22 shipowners by the end of May 2016. Further, it also plans to hold a meeting with bondholders on 19 May 2016 to extend the maturity date on KRW 35.8bn won of its bonds by four months.
Source: The Korea Herald