The funding is separate from the roughly 100 billion won in loans that three South Korean government officials said government-backed creditors are ready to provide if Hanjin’s parent provides collateral.
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Hanjin Shipping has filed for bankruptcy protection in the U.S.at a court in Newark, New Jersey.
Hanjin Group said Tuesday it will inject $90 million, including $36 million from its chairman Cho Yang-ho’s personal assets, to help resolve disruptions to container cargo transport caused by Hanjin Shipping Co.’s financial troubles.
Hanjin has filed a petition for stay orders before a USA court and the result is expected to come out on Wednesday, while the authorities of Hamburg and Singapore are very supportive, noted Choi.
Hyundai Merchant Marine, now under a creditor-led debt restructuring scheme, may seek to take over Hanjin Shipping’s healthy assets, such as port terminals and global business networks. “This is going to help ease some of the bottlenecks in the supply chain”.
Although expectations that Hanjin Shipping will be able to survive are low, the stock surged 30 percent on Tuesday, the daily limit, as investors made speculative bets on a stock that hit an all-time low on Monday.
“Given the vast amount of cargo and value remaining on the vessels, Hanjin’s administrators will have to do all they can to get the ships into ports, as they have to avoid additional claims against Hanjin for delays and possible damages”, said Harald von Seydlitz-Kurzbach, managing director at Bremen, Germany-based Reck & Co., which is part of the Lloyd’s Agency Network representing cargo interests in legal disputes. “We were barred entry outside the port, so we are floating east of Tokyo port”, Park Kong-soon, captain of the Hanjin Atlanta, which has a crew of 20, told Reuters by satellite phone. There is no word besides what we see on the news, that the government is making efforts for Hanjin Shipping.
A Hanjin spokesman was not immediately available to confirm the report.
“The top priority is to help Hanjin ships have their freight safely offloaded in the port”, said the official.
Vice Finance Minister Choi Sang Mok said Monday that Hanjin Shipping is seeking stay orders in 43 countries to protect its vessels from being seized and will call at certain ports such as Hamburg and Singapore where they are deemed less likely to be stranded.
Hanjin has 141 ships, of which 128 are operating.
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The measure is aimed at “minimizing the cases where Hanjin Shipping’s vessels are being seized in foreign countries”, South Korea’s government said in a statement jointly released by several ministries including the FSC. Hanjin vessels were carrying cargo worth 16 trillion won belonging to some 8,300 cargo owners, the Korea International Trade Association said on Monday.
