Hanjin Heavy’s Philippines unit files for court receivership
Korean shipbuilder Hanjin Heavy Industries & Construction said on Jan. 8 that its offshore unit in the Philippines has filed for court receivership.
Its wholly owned subsidiary operates Subic Shipyard, 80 kilometers northwest of Manila. The company’s restructuring will be authorized by the Olongapo City Regional Trial Court.
The overseas unit was established in 2006 and has been building container carriers, gas carriers and tankers, among others. Since 2016, amid the prolonged downturn in the global shipbuilding industry, its business has faltered. Its total capital came to 1.84 trillion won (US$1.64 billion) as of end-2017.
In Korea, Hanjin Heavy operates the Yeongdo Shipyard in the port city of Busan.
Subic Shipyard’s belt-tightening measures such as downsizing and cost-cutting, coupled with liquidity support by the parent company, has so far prevented its insolvency, Hanjin Heavy’s main creditor Korea Development Bank said in a statement.
The policy bank noted that the business suspension of Subic Shipyard would have minimal impact on the company’s operations in Korea.
Meanwhile, Hanjin Heavy’s stock price in Korea nearly hit the price floor on Jan. 8, taking a 27.4 percent loss in closing from the previous trading day.
Source: The Investor