[Yonhap Photo]
SEOUL -- Hanjin Heavy Industries & Construction, a mid-sized South Korean shipyard, gained a legal ground to facilitate the sale of its affiliate in the Philippines after a local court approved a rehabilitation program.
Hanjin Heavy said Tuesday in a regulatory filing that a Philippine court endorsed the legal process of corporate rehabilitation for HHIC-Phil in Subic, a coastal municipality northwest of Manila. To reduce its debt, the parent company has sold non-core assets. The Subic shipyard with about 4,000 workers was valued at 1.84 trillion won ($1.64 billion).
Hanjin Heavy, a Hanjin group unit, is South Korea's oldest shipyard founded in 1937. Like other South Korean shipbuilders, the Hanjin shipyard has been kept afloat with money from creditors under a government-led restructuring program. In 2016, Hanjin Heavy received a bailout of 250 billion won. In return, the shipyard promised to raise 2.1 trillion through the sale of real estate and non-core assets. By the end of December last year, the shipyard has raised 1.4 trillion won.
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