Hanjin thrown multi-million-pound lifeline to rescue stranded cargo

Jessica Morris
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Hanjin filed for receivership in a Seoul Court on 31 August (Source: Getty)

The troubled shipping firm Hanjin has been thrown a multi-million-pound lifeline to rescue the stranded cargo which is trapped on its ships across the world.

It comes after the firm's bankruptcy had what analysts have described as a "Lehman-like freeze" effect on the industry.

The Korea Development Bank, the lead creditor of Hanjin Shipping, said that it will offer a 50bn won (£35m) credit line to help the firm unload stranded cargo.

KDB said it can only be used when funds from the company itself, top shareholder Korean Air Lines, Hanjin Group's chairman and a former Hanjin Shipping chairwoman meant to help unload cargo are used up.

Korean Airlines has agreed to lend 60bn won, while Hanjin Group's chairman has agreed to provide 40bn won and former Hanjin Shipping chairwoman has stumped up 10bn won.

But the total is still well short of the 270bn won Hanjin estimates it will need to clear all the cargo which has been stuck at sea since Hanjin filed for receivership in a Seoul Court on 31 August.