Creditors to sell Hanjin Heavy Industries & Construction

SEOUL, April 21 (Yonhap) -- Creditors of Hanjin Heavy Industries & Construction Co. plan to sell their stake in the shipbuilder this year, an official familiar with the issue said Tuesday.

Main creditor Korea Development Bank (KDB) and other banks are set to discuss the issue Tuesday, the official said.

The KDB holds a 16.14 percent stake in Hanjin Heavy, while five other major banks -- Woori, NH Nonghyup, KEB Hana, KB Kookmin and Export-Import Bank of Korea -- hold 10.84 percent, 10.14 percent, 8.90 percent, 7.09 percent and 6.86 percent stakes in Hanjin Heavy, respectively.

Hanjin Heavy suffered from capital erosion last year due to the troubles of its Subic shipyard in the Philippines. Creditors in South Korea and the Philippines later agreed to convert debt worth 687.4 billion won (US$559 billion won) into equities.

On Tuesday, Hanjin Heavy jumped by the daily limit of 30 percent to 6,110 won on the news, far outperforming the broader KOSPI's 1 percent loss.

entropy@yna.co.kr
(END)