Short-term debt for Hanjin far exceeds the average Source: Bloomberg
(Companies considered: Hanjin Shipping Co Ltd, AP Moeller - Maersk A/S, COSCO Shipping Co Ltd, Hapag-Lloyd AG, Kawasaki Kisen Kaisha Ltd, Mitsui OSK Lines Ltd, Nippon Yusen KK, Wan Hai Lines Ltd)
Stressed liquidity-cornerstone of the receivership filing
Hanjin filed for the receivership with the South Korean Court as all the funds with the company dried up. Hanjin’s liquidity has been constantly worsening since 2010 as compared to few of the other container carriers. Some of the other carriers managed to stay afloat by selling off their assets, scrapping older vessels and through cash infusion by parent companies and lenders. On the other hand, Hanjin …show more content…
(backed by Samra Midas Group) have majorly bid for the assets on sale by Hanjin. KDB has recently rolled over the loan of USD 171 mn to HMM. It is interesting to note that the KDB (largest shareholder of Hanjin), which is also a lender to Hanjin chose to back HMM over Hanjin. This is because:
• HMM has recently undergone debt-for-equity swaps with its lenders, which has significantly reduced the liabilities. HMM has also renegotiated charter contracts, which reduced the costs up to USD 453 mn (as per the company reports).
• HMM has been selling off the non-core assets and the focus is on container business. The revenue from this business has grown to 2/3rd, from lesser proportions in erstwhile periods
On the other side, Korean Air, the largest shareholder in Hanjin Shipping does not plan to infuse more money due to the lack of a credible plan of operations, which was to be submitted to the board by the
(Companies considered: Hanjin Shipping Co Ltd, AP Moeller - Maersk A/S, COSCO Shipping Co Ltd, Hapag-Lloyd AG, Kawasaki Kisen Kaisha Ltd, Mitsui OSK Lines Ltd, Nippon Yusen KK, Wan Hai Lines Ltd)
Stressed liquidity-cornerstone of the receivership filing
Hanjin filed for the receivership with the South Korean Court as all the funds with the company dried up. Hanjin’s liquidity has been constantly worsening since 2010 as compared to few of the other container carriers. Some of the other carriers managed to stay afloat by selling off their assets, scrapping older vessels and through cash infusion by parent companies and lenders. On the other hand, Hanjin …show more content…
(backed by Samra Midas Group) have majorly bid for the assets on sale by Hanjin. KDB has recently rolled over the loan of USD 171 mn to HMM. It is interesting to note that the KDB (largest shareholder of Hanjin), which is also a lender to Hanjin chose to back HMM over Hanjin. This is because:
• HMM has recently undergone debt-for-equity swaps with its lenders, which has significantly reduced the liabilities. HMM has also renegotiated charter contracts, which reduced the costs up to USD 453 mn (as per the company reports).
• HMM has been selling off the non-core assets and the focus is on container business. The revenue from this business has grown to 2/3rd, from lesser proportions in erstwhile periods
On the other side, Korean Air, the largest shareholder in Hanjin Shipping does not plan to infuse more money due to the lack of a credible plan of operations, which was to be submitted to the board by the