KDB to extend $45 million credit line to help unload Hanjin cargo
By Joyce Lee
SEOUL (Reuters) - Korea Development Bank (KDB), the lead creditor of Hanjin Shipping Co Ltd 117930.KS said on Thursday it will offer a 50 billion won ($45 million) credit line to help Hanjin unload stranded cargo.
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 Hanjin Shipping, top shareholder Korean Air Lines, Hanjin Group's chairman and a former Hanjin Shipping chairwoman meant to help unload cargo are used up, KDB said in a statement.
Korean Air Lines (003490.KS: Quote), Hanjin Shipping's largest shareholder, agreed late on Wednesday to lend 60 billion won to help unload cargo.
The airline's loan is in addition to 40 billion won provided by the Hanjin Group's chairman, and 10 billion won provided by the former Hanjin Shipping chairwoman.
KDB's credit line, like Korean Air's loan, also takes Hanjin Shipping's accounts receivables as collateral, KDB said in a statement.
However, KDB's loan will take higher priority than Korean Air's claim, and the funds are not meant to support Hanjin Shipping as a company but to address cargo delays, KDB said.
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. Continued...