Private Sector Takeover On Hanjin Heavy Industries and Construction Philippines (HHIC-Phil)
TAKEOVER ON HHIC-PHIL – Purchase of Hanjin Heavy Industries and Construction Philippines by a private sector will take some time according to Trade Secretay Ramon M. Lopez.
Hanjin Heavy Industries and Construction Philippines or HHIC-Phil, is a subsidiary of the Korean shipbuilder. It’s bankruptcy was announced back in January 8.
They reportedly ceased all operations due to lack of funding and incapability to pay debt. It was dubbed “The biggest corporate bankruptcy.”
Since the filing of Bankruptcy of HHIC-Phil, there were no confirmed offers from private firms regarding to the takeover of their assets yet.
The Trade Secretary said that taking over the assets of HHIC-Phil will take a lot of time and studying. And that the government will make sure to look at all other possible options before proceeding to a government takeover.
According to an article from Manila Bulletin, Trade Secretary Ramon M. Lopez told the reporters about the current position of Hanjin in his statement:
“The government agencies involved are still talking. There is nothing firm yet. There is an ongoing interest from United States, Japan, and South Korean, too. China mentioned they are looking into venturing into the same business here but not necessarily into Hanjin assets.”
He claimed that at least two companies from each for the countries he mentioned are now looking into Hanjin assets.
Currently, the Hanjin Industry has $1.3 billion USD in loans. Of which, $400 million USD they owe to several local banks and $900 million from South Korean lenders.
The Trade Secretary also said that the government did not set a definite deadline as to when the private companies should make the offer and when the government takeover will occur. However, they want it resolved as early as possible.
That is all there is to if for now. We’ll post updates as soon as we got them.