- As Hanjin Shipping to Sell Vietnamese Terminal Stake
South Korean shipbuilder Samsung Heavy Industries (SHI) could see its self-rescue plan finalized as the company’s creditor state-run Korea Development Bank (KDB) is set to wrap up SHI’s plan during the week, Yonhap News Agency cited industry sources.
Under the KRW 1.5 trillion (USD 1.3 billion) plan, submitted in May 2016, the financially troubled shipbuilder will make workforce cuts through an early retirement scheme and ask its executives to return part of their salaries.
The plan includes up to 1,500 early retirements by the end of the year, selling of KRW 200 billion worth of real estate assets and disposing of stakes in Doosan Engine.
SHI is one of the country’s Big Three shipbuilders who have been hit by an ordering slowdown prompted by shipping and offshore industry woes.
The company’s compatriot shipbuilder Daewoo Shipbuilding & Marine (DSME) was required to submit layoffs and cost savings, while Hyundai Heavy Industries (HHI) was required to pursue self-rescue plans with creditor banks.
Both DSME and HHI earlier received approval from their creditors to carry out their submitted plans.
Meanwhile, South Korea’s cash-strapped shipping firm Hanjin Shipping decided to sell its stake in the Vietnamese Tan Cang Cai Mep International Terminal (TCIT) as it struggles to raise more money, the company said in a stock exchange filing.
On Tuesday, the shipping firm said that it is selling its stake of over 21 percent in the terminal, raising a total of some KRW 37.7 billion (USD 32.8 million).
TCIT is a joint venture company of Saigon Newport Corporation with three shipping lines including the Japanese Mitsui O. S. K. Lines, Hanjin Shipping, and Taiwan’s Wanhai Shipping.
Last week, Hanjin Shipping started negotiations with local and financial companies in an effort to delay the repayment of its KRW 2.5 trillion (USD 2.16 billion) debt by up to three years.
The company, which is currently under creditor-led restructuring, has been in talks with shipowners on charter rate cuts. Hanjin’s first round of talks with 22 shipowners failed to receive any positive response.
World Maritime News
