San-eun and Other Creditors to Sell Hanjin Heavy Industries... "Aim to Complete Sale Within the Year"

A view of Hanjin Heavy Industries Subic Shipyard.

[Asia Economy Reporter Jo Gang-wook] The creditors, including the Korea Development Bank, are pushing for the sale of Hanjin Heavy Industries.

According to financial sources on the 21st, nine creditor banks held a shareholders' council meeting in the afternoon and agreed to submit a resolution consenting to the sale of Hanjin Heavy Industries to the main creditor bank, the Korea Development Bank.

A representative of the creditors stated, "The agenda for the sale is expected to pass smoothly at the shareholders' council," adding, "We aim to complete the sale within the year through a competitive bidding process."

As of the end of last year, the share distribution of Hanjin Heavy Industries consisted of Korea Development Bank at 16.14%, Woori Bank at 10.84%, NongHyup Bank at 10.14%, Hana Bank at 8.90%, Kookmin Bank at 7.09%, and Export-Import Bank of Korea at 6.86%, among others.

Previously, in February of last year, Hanjin Heavy Industries fell into a capital erosion state due to the insolvency of its subsidiary, the Subic shipyard in the Philippines. Consequently, domestic and Philippine creditors decided to convert debts amounting to 687.4 billion KRW into equity. Following this, in May of last year, after a third-party allotment capital increase was completed, the largest shareholder changed from Hanjin Heavy Industries Holdings to the Korea Development Bank.

Hanjin Heavy Industries recorded separate financial statements showing sales of 1.6095 trillion KRW and an operating profit of 77 billion KRW last year, turning profitable. In 2018, it had recorded an operating loss of 66 billion KRW.

The creditors are interpreted to be pushing for the sale as they judge that the management normalization of Hanjin Heavy Industries has been achieved to some extent.

This content was produced with the assistance of AI translation services.