Korean Air has decided to provide 60 billion won, or nearly 54 million U.S. dollars, for its ailing affiliate Hanjin Shipping to unload cargo stranded on its container carriers.
The country’s largest airline held an emergency board of directors meeting on Wednesday evening and decided to loan the funds to Hanjin Shipping by holding its account receivables as collateral.
Korean Air said it plans to execute the financing as soon as the necessary procedures are ready.
The decision expands the aid package provided to the shipper by its owner, Hanjin Group, to 100 billion won. On September 13th, Hanjin Group Chairman Cho Yang-ho offered 40 billion won to Hanjin Shipping from his personal coffers.
The country's largest shipping line filed for bankruptcy protection on August 31st after its creditors, led by Korea Development Bank, refused to give extra funding for the firm's self-rescue plan.