Several proposals are being considered for this shipbuilder swimming in debts.
Hanjin Heavy Industries and Construction Philippines has been given the go signal by a local court to under corporate rehabilitation as the South Korean company declared it was going under.
Now, the Philippine government is stepping in to possibly intervene and help out Subic Freeport’s biggest investor, even if it this was technicallyy out of their hands. Hanjin Philippines owes $412 million to five local banks, among them the government-owned Land Bank of the Philippines.
Here’s a list of the options being considered so far:
1. Find a “white knight” foreign company to buy Hanjin, acquire the business, and pay off its debts. Two Chinese firms are said to be interested, but Defense Secretary Delfin Lorenzana said they are eyeing to offer the shipbuilder to others from US, Japan, Korea or Australia.
2. Take over the facility. The Philippine Navy said they could use it to build the government’s own ships.
3. Acquire the firm, take a stake, and sell bits and pieces to other private buyers down the road.