Hanjin Heavy Industries & Construction (HHIC) announced on Jan. 8 that its subsidiary, HHIC-Phil, applied for a corporate rehabilitation procedure at the Olongapo City Regional Trial Court in the Philippines.
HHIC, which had been making operating profits for the three consecutive years since it signed the self-agreement with creditors in 2016, is facing a snag that it is applying for the court relief of its subsidiary.
The Hanjin Subic Shipyard was built in 2004 by HHIC in Subic, the Philippines. Since then, Yeongdo Shipyard in Busan has built special ships and Subic Shipyard has constructed commercial vessels.
The Subic shipyard has been unable to withstand a decline in orders and falling prices as the shipbuilding industry has been suffering the sluggish business for 10 years. There are only 10 orders left for Subic Shipyrd.
HHIC, its parent company, will set up and operate a special counseling center to minimize damage to its business partners. The combined assets of the Subic Shipyard subsidiary amount to 1.84 trillion won, and about 4,000 employees, chiefly Filipinos, are working at the shipyard.
