South Korean shipping company Hanjin Shipping has revealed its plans to turn to creditor-led debt restructuring in an effort to improve its financial situation, the company said in a stock exchange filing.
Having been faced with an outstanding debt of USD 406 million due in the first half of this year, the company is now aiming to improve the financial structure and “normalize” its management.
Hanjin added that the restructuring plans will be submitted on April 25.
Although the company managed to return to profit in 2015 after cutting a number of its costs, Hanjin decided to take further measures to remain in black during 2016 as the freight rates are expected to resume already reached record lows.
The company agreed to sell its office building in London in March for KRW 66.7 billion (USD 57.2 million), and it has further plans to dispose of certain overseas terminals and treasury stocks in an effort to deal with the current depression in the shipping industry.