Hanjin Shipping, a South Korean container operator, has secured approval from its creditor banks to proceed with a voluntary restructuring after it filed an application for debt restructuring last week.

The firm was quoted by seatrade-maritime.com as stating: "This approval by the creditor banks will play a crucial role in our discussions regarding alliance reorganisation and our business normalisation efforts such as charter rate reduction and etc."

In order to achieve normalisation of business, the company intends to work closely with its creditors.

“In order to achieve normalisation of business, the company intends to work closely with its creditors.”

Hanjin Shipping is part of the CKYHE alliance.

Following the departure of Cosco and Evergreen, this alliance will be left with Hanjin Shipping, K Line and Yang Ming. These two firms will have the option to reorganise their partnerships.

Hanjin Shipping has a debt of around KRW5.6 trillion ($4.93bn).

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Korea Development Bank, which is the primary shareholder of Hanjin Shipping, had been urging the shipping company’s board for a restructure.

Last week, the board of directors agreed for debt restructuring.