Hanjin ‘very sensitive’ to security fears over possible ‘Chinese takeover’ — SBMA chief
MANILA, Philippines — Shipbuilder Hanjin Philippines — which recently declared bankruptcy after it defaulted on over $400 million in bank loans — is “very sensitive” to security concerns raised following reports saying Chinese firms have expressed interest in taking over the Philippines' largest shipyard.
That was according to Subic Bay Metropolitan Authority Chairperson Wilma Eisma, who said Hanjin is in talks with “several white knights” to save the financially-distressed company.
“You are right, it should be Hanjin’s decision on whether or not who their white knight should be and they should be practical,” Eisma said in an interview with ANC on Wednesday.
“But the last time I spoke to Hanjin which is around two weeks ago, they understand the situation of the country and they do appreciate the concern on should a Chinese company come in to take over or to continue the operations in Hanjin,” she added.
“So I think they are very sensitive to those concerns.”
An Olongapo City court last month approved rehabilitation proceedings for Hanjin Philippines as it struggles to pay $412 million in combined loans from five Philippine banks, in what could be the biggest corporate default in the country’s history.
The troubled company’s woes came amid weakness in the global shipping industry and financial issues at its Korean parent company.
Hanjin Philippines was established in 2006 as a subsidiary of South Korean shipbuilder Hanjin Heavy Industries and Construction Co. Ltd. Since 2008, the company has delivered a total of 123 vessels to clients across the globe, putting the Philippines on the map as the world’s fifth largest shipbuilder.
The South Korea shipbuilder is the biggest foreign investor and top employer at the Subic Bay, a former US naval base just 124 nautical miles from Scarborough Shoal, a disputed area of the South China Sea.
Defense Secretary Delfin Lorenzana earlier said President Rodrigo Duterte was “very receptive” to a possible government takeover of Hanjin Philippines’ facilities after officials expressed alarm over two Chinese shipbuilders’ reported interest in acquiring the embattled company.
“While I cannot divulge right now the companies involved, to me, personally, there are two possible white knights who have come forward that are not Chinese companies,” Eisma said.
“At least several Europeans and one from North America [are interested in Hanjin]. So there are credible discussions. In fact, one of them is currently in Hanjin right now doing due diligence already,” she added.
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