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Receivership looms larger over Hanjin Shipping

All Headlines 12:59 August 30, 2016

SEOUL, Aug. 30 (Yonhap) -- Creditors of Hanjin Shipping Co. on Tuesday decided not to extend additional support to the cash-strapped shipper, creditor sources said, triggering speculation about its possible court receivership.

A creditor-led restructuring scheme for the largest South Korean shipper is set to end Sept. 4, which means the Hanjin Group company will be left with little choice but to file for receivership before the deadline.

The creditors, led by the state-run Korea Development Bank, have been ratcheting up pressure on the world's eighth-largest shipping line to roll out stronger self-rescue plans with a threat to put it under receivership.

But Hanjin Shipping's latest restructuring scheme centered on an infusion of 400 billion won (US$357 million) from its largest shareholder, Korean Air Lines, fell short of the demands of creditors, which have asked for at least 600 billion won.


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