Philippine banks in deal to save South Korea's Hanjin

$410mn debt-equity swap intended to put shipbuilder back on track

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The future of HHIC's Philippine shipyard has been in question since the unit filed for bankruptcy protection in January. (Photo courtesy of Subic Bay Metropolitan Authority)

KIM JAEWON and CLIFF VENZON, Nikkei staff writers

SEOUL/MANILA -- Philippine banks are coming to the rescue of South Korea's troubled shipbuilder, Hanjin Heavy Industries & Construction, with a $410 million debt for equity swap that could help keep the company afloat.

The banks' decision to take shares in HHIC comes as the shipbuilder prepares to shutter its Philippine unit's Subic Bay shipyard with the loss of some 3,500 jobs.

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