State-run Korea Development Bank announced it will help Hanjin Heavy Industries & Construction, South Korea’s oldest shipbuilder, to stand on its feet, following the shipbuilder’s move to file for rehabilitation. KDB reported on February 13, that it would help Hanjin Heavy negotiate with a number of Filipino financial institutions who are owed vast sums of money by the Korean yard.
Specifically, the shipbuilder announced to the Korean Exchange, that its affiliate yard in the Philippines has filed for a rehabilitation procedure.
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In addition, Hanjin Heavy Industries reported that its stock trading has been suspended until the end of March due to capital erosion.
After the company’s file for rehabilitation, the President of Philippines, Rodrigo Duterte, noted that he’s open to a government takeover of the recently-bankrupted Hanjin Heavy Industries and Construction Philippines (HHIC-Phil), according to Defense Secretary Delfin Lorenzana, driven mostly by concerns to save thousands of Filipino jobs.
In conclusion, Hanjin Heavy reported that it would continue debt-for-equity swaps with its creditors, including state-run KDB.
