Han­jin spends mil­lions to ease cri­sis

The Myanmar Times - - International Business -

SOUTH Korea’s Han­jin Group said yes­ter­day it would pro­vide its deb­trid­den ship­ping unit with 100 bil­lion won (US$90.4 mil­lion) to help ease huge dis­rup­tions to global mar­itime freight.

Han­jin, the world’s seventh-largest ship­ping com­pany, is seek­ing bank­ruptcy pro­tec­tion at home and in the US af­ter cred­i­tors re­jected its lat­est plan to deal with a $5.37 bil­lion debt.

Its bank­ruptcy would be by far the largest in the his­tory of con­tainer ship­ping, which is suf­fer­ing from its worst down­turn in six decades be­cause of slump­ing global trade and a slow­down in China.

More than half of Han­jin’s fleet – 79 ves­sels – is ei­ther stuck in port or un­able to dock, with au­thor­i­ties fret­ting the com­pany will not be able to pay its bills.

Its par­ent Han­jin Group said it would spend 100 bil­lion won, which in­cludes a per­sonal do­na­tion of 40 bil­lion won from its chair and big­gest share­holder Cho Yang-ho, to “nor­malise” op­er­a­tions of its con­tainer ships.

“We have reached the de­ci­sion to min­imise dam­ages on ex­port com­pa­nies,” it said in a state­ment.

Han­jin said it would also use its other sub­sidiaries in­clud­ing flag car­rier Korean Air to move cargo as con­cerns grow over the de­layed de­liv­ery of goods ahead of Thanks­giv­ing and Christ­mas hol­i­day shop­ping in the United States. –

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