State-run Korea Development Bank (KDB) and other creditors of debt-ridden Hanjin Shipping Co. on Friday hinted that the country’s largest container carrier would fall under court control after the shipper has failed to come up with sufficient liquidity plan to cover its debts.

Hanjin Shipping’s main creditor KDB on Friday informed other creditors - KEB Hana Bank, Woori Bank, NH Nonghyup Bank, KB Kookmin Bank and BNK Busan Bank - that the shipping company would need up to 1.7 trillion won funds to cover debts until next year, a sharp increase from the previous estimate of up to 1.2 trillion won after the company posted worse-than-expected results in the second quarter ended June.

Hanjin Shipping’s parent company Hanjin Group has submitted a new 560 billion won worth self-rescue plan that includes 400 billion won capital increase by its flagship Korean Air Lines Co., 100 billion won funds including private contribution from the group Chairman Cho Yang-ho, and 60 billion won from sale of shareholder accounts receivable of the TTI terminal in the United States.

Hanjin Group, however, vowed that it would contribute additional 100 billion won including private funds from Chairman Cho under the condition that creditors guarantee additional loans for the insufficient funds it needs. It has requested its creditors to cover the remaining funds of at least 600 billion won.

On Thursday, KDB already rejected Hanjin Group’s revised outline of raising about 500 billion won, and other creditors are known to be unhappy with the latest plan, either, increasing the possibility of Hanjin Shipping heading to court receivership.

An unnamed official from KDB expressed discontent over the new proposal, noting that Chairman Cho would make private donation only if Hanjin Shipping falls into worse situation, and the terminal sale is just a tentative plan, indicating that the group’s new outline has not changed much from the previous offer pledging to raise 400 billion.

Creditors will make a final decision on August 30 on whether to halt the current voluntary workout program that was accepted by creditors in May.

By Kim Jung-hwan, Chung Seok-woo

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