Hanjin Shipping battles to trim charter rates to avoid receivership
SOUTH Korea's cash-strapped Hanjin Shipping has been seeking to persuade the owners of its chartered fleet to lower their charter rates since April, but to little avail to meet conditions set by creditors to avert court receivership, according to industry sources.
This comes amid a creditor-led restructuring for the shipping line in early May, granting a three-month suspension on all payments of principal and interest.
But the reprieve is subject to the condition that the carrier reduces its charter rates, wins approval for debt recast from its bondholders, and joins a global shipping alliance.
"Hanjin Shipping is required to report some progress in its charter rate cut talks by early August," said an official of one of the creditors, reported Yonhap new agency. "If it fails in the talks, we have to take a second step."
Hanjin Shipping has held a first round of talks with 22 owners of its chartered vessels, but failed to receive any positive responses from them.
The company's struggle for the charter rate cut is in stark contrast to its local rival, Hyundai Merchant Marine, which has reached an agreement with its shipowners to cut charter rates by 21 per cent.
Furthermore, a vessel operated by Hanjin Shipping was impounded for three days in South Africa for unpaid charter fees, raising concerns that the shipper's financial status has dramatically worsened.
SOUTH Korea's cash-strapped Hanjin Shipping has been seeking to persuade the owners of its chartered fleet to lower their charter rates since April, but to little avail to meet conditions set by creditors to avert court receivership, according to industry sources.
This comes amid a creditor-led restructuring for the shipping line in early May, granting a three-month suspension on all payments of principal and interest.
But the reprieve is subject to the condition that the carrier reduces its charter rates, wins approval for debt recast from its bondholders, and joins a global shipping alliance.
"Hanjin Shipping is required to report some progress in its charter rate cut talks by early August," said an official of one of the creditors, reported Yonhap new agency. "If it fails in the talks, we have to take a second step."
Hanjin Shipping has held a first round of talks with 22 owners of its chartered vessels, but failed to receive any positive responses from them.
The company's struggle for the charter rate cut is in stark contrast to its local rival, Hyundai Merchant Marine, which has reached an agreement with its shipowners to cut charter rates by 21 per cent.
Furthermore, a vessel operated by Hanjin Shipping was impounded for three days in South Africa for unpaid charter fees, raising concerns that the shipper's financial status has dramatically worsened.