[Aju News DB]
The owner of South Korea's Hanjin Group has secured 36 million US dollars in cash for the rehabilitation of the group's embattle shipping unit which was put under court receivership, disturbing cargo delivery, financial regulators said Tuesday.
Group head Cho Yang-ho has borrowed 40 billion won ($36 million) from banks by using his stockholdings in group units as collateral, Yim Jong-yong, chairman of the Financial Services Commission, told a meeting of government officials and ruling party legislators.
Yim said the fund would be used for the country's largest container carrier to ease a liquidity crisis.
Cargo delivery by dozens of Hanjin vessels has been disrupted around the world, causing a delay in exports of South Korean goods, since Hanjin Shipping was put under court receivership on August 31.
Court receivership came after Cho and his family refused to chip in more money for the restructuring of Hanjin Shipping.
Under pressure, the group vowed to inject some 100 billion won into Hanjin Shipping, after government officials suggested a low-interest loan would be provided if Hanjin units provide collateral.
It is still unclear, however, whether the shipper's largest shareholder, Korean Air Lines Co., will be able to provide 60 billion won in cash to Hanjin Shipping as its board demand collateral for the cash injection, Yonhap News reported.
Aju News Lim Chang-won = cwlim34@ajunews.com
reporter
Park Sae-jin
swatchsjp@ajunews.com
