September 7, 2016 / 7:07 AM / 3 years ago

South Korea court asks Hanjin Shipping creditor for funds

The logo of Hanjin Shipping Co is seen on a replica of shipping containers at its headquarters in Seoul, South Korea, August 31, 2016. REUTERS/Kim Hong-Ji/File Photo

SEOUL (Reuters) - A South Korean court presiding over the rehabilitation process of Hanjin Shipping Co Ltd 117930.KS has asked the firm’s lead creditor for fresh funds, warning the troubled container shipper needs financial support this week to normalize operations.

The court did not say how much it had requested from lead creditor Korea Development Bank and government ministries.

Hanjin Shipping’s parent firm said on Tuesday it plans to raise 100 billion won ($90 million) to fund the unloading of billions of dollars worth of cargo aboard vessels stranded around the world in the wake of its court receivership filing last week.

“It is unclear when the 100 billion won financial support package announced by Chairman Cho Yang-ho and Hanjin Group can be executed and this is also far short of the amount needed to normalize Hanjin’s operations,” the court said.

About $14 billion worth of cargo is on Hanjin ships that cannot operate normally following the firm’s filing for court receivership, according to the court.

A Korea Development Bank spokesman said he is checking whether the bank has received the court’s request. He declined additional comment.

Reporting by Joyce Lee; Writing by Se Young Lee; Editing by Edwina Gibbs

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