Hanjin Gets $45 Million Credit Line From KDB
Korea Development Bank has offered a conditional credit line of 50 billion won ($45 million) to help ease supply-chain disruptions caused by the collapse of Hanjin Shipping Co, says a report in Reuters.
An estimated $14 billion of cargo was trapped on Hanjin ships when the world's seventh-largest container carrier collapsed late last month, creating havoc ahead of the crucial holiday shopping season.
The credit line is to be used only when all available funds from the nation’s biggest container mover, top shareholder Korean Air Lines, Hanjin Group's chairman and a former Hanjin Shipping chairwoman meant to help unload cargo are used up, the state-owned bank said in a statement.
The world's seventh-largest container carrier's shares rallied 30 percent Thursday, rebounding from a record low, as the promise of the additional funds followed a Wednesday decision by Korean Air to provide 60 billion won in loans.
Its estimated that the company needs at least 600 billion won to cover unpaid costs such as fuel and cargo handling, But the newly pledged funds may help Hanjin temporarily deal with the crisis.
Even with KDB's credit line, the total is still well short of the 270 billion won Hanjin estimates it will need to clear all the cargo, a Seoul Central District Court judge said on Thursday, citing the company's most recent figure submitted to the court.
Some 31 of Hanjin's 97 leased and owned container ships have completed unloading, Hanjin Shipping data showed on Thursday. All chartered vessels have been ordered to be returned to their owners but dozens remain waiting at sea while funds are raised and protection from creditors is organized.