Hanjin Gets Korean Air Funds as Court Says Revival at Risk
- Shares surge after airline’s board approves immediate funding
- Court criticizes slow resolution of shipping disruptions
Hanjin Shipping Get $54M Loan From Korean Air
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Hanjin Shipping Co., the South Korean container line that has sought bankruptcy protection, won a temporary reprieve after its largest shareholder agreed to provide 60 billion won ($54 million) in new loans. Shares surged in Seoul.
The financing will be provided immediately, and the shipping company’s accounts receivable will be used as collateral, top shareholder Korean Air Lines Co. said after the carrier’s board approved the funding Wednesday. The South Korean government had estimated that Hanjin needed at least 600 billion won to cover unpaid costs such as fuel and cargo handling.