Those ships are holding an estimated billion in cargo, Reuters.com reported.
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Korean Air Lines Co. will inject 60 billion won ($54.5 million) to its subsidiary Hanjin Shipping Co.to help the shipper normalize operations of vessels and cargoes denied by worldwide ports after it was placed under a local bankruptcy court early this month.
“It’s heartbreaking that the country’s No. 1 shipper Hanjin Shipping has come under court receivership, but it’s improper to inject tax money into the troubled company”, Finance Minister Yoo Il-ho said in an interpellation session at the National Assembly.
The airline’s loan is in addition to 40 billion won provided by the Hanjin Group’s chairman, and 10 billion won provided by a former Hanjin Shipping chairwoman.
Its bankruptcy would be by far the largest in the history of container shipping, which is suffering is worst downturn in six decades because of slumping global trade and a slowdown in China.
Hanjin, which filed for court receivership late last month, must submit a rehabilitation plan in December that creditors owed billions of dollars will be called to agree to.
Hanjin’s court-sanction self-restructuring plan has left many of its containerships either unable to dock or to unload their cargo without risking seizure by creditors, but many other Hanjin container vessels have been stranded due to the lack of court-issued stay orders.
Korean Air was up nearly 6% in early trade.
SEOUL-South Korea’s Hanjin Shipping Co.117930 29.61 % has won a temporary reprieve after the board of its largest shareholder agreed to provide 60 billion won ($54 million) to get its stalled supply chain moving again.
As of early this month, the company had 141 vessels under its flag, including 97 container ships.
Shares of the company dropped 1.9% to close at 1,260 won in Seoul on Monday.
The Hanjin Miami is loaded with televisions, computers and other merchandise headed for retailers, Radak said, and according to news reports it was one of about 30 Hanjin container ships around the world still stranded as of Sunday. The company has been negotiating with port authorities in New York, Singapore and Manzanillo, Mexico, to start unloading additional cargo this week.
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Shares of Hanjin soared by as much as 28% following Korean Air’s decision.
