Hanjin Shipping needs $1 bn to keep afloat over next two years: report

By Park Yong-beom and Chung Seok-woo, Maeil Business News Korea South Korea’s debt-ridden Hanjin Shipping Co. will need 1.2 trillion won ($1 billion) to remain afloat over the next two years, including 670 billion won for this year alone, even under a possible creditor-led restructuring program, according to a report written by Samil PricewaterhouseCoopers (PwC) on Thursday. Photo courtesy of Pulse/Maeil Business News Korea The report was based on the auditing company’s due diligence on the container carrier conducted for three months. The report shows the shipping company will need 450 billion won in the first half of this year alone. But the company’s self-rescue plan proposed on Monday is worth about 410 billion won at best. Hanjin Shipping will be definitely short of operating capital even under the debt rescheduling program without creditors’ active role in providing financial aid. This is the reason why creditors are demanding additional self-rescue [...]