The KRW300 billion US$296.6 million) sale of Hanjin Shipping's dry bulk business to a private equity firm, and a KRW1.98 trillion gain from an oil refinery stake to Saudi Aramco, will come as a relief to its new parent company Korean Air.
That's because two Hanjin asset sales eliminated a KRW1.3 trillion of debt, reports Alphaliner.
Korean Air became the largest shareholder in Hanjin Shipping with a 33.2 per cent stake after it purchased KRW400 billion in shares in early June.
Hanjin Shipping has suffered losses of KRW2.14 trillion for three consecutive years. In the first quarter of 2014, its net loss reached KRW225 billion, and it is expected to suffer a continuing losses.
Hanjin Shipping's financial revival plans include the sale of old vessels and the group's Algeciras container terminal in Spain, a port which recently became the busiest on the Mediterranean.
A consortium of the Industrial Bank of Korea and Korea Investment Partners had been selected as a preferred bidder to take over the TotalTerminal International (TTI) Algeciras. Negotiations are currentlyunderway in a deal that is expected to be worth some KRW300 billion.
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