Hanjin Heavy Industries Risk Report

🛡️ Financial & Liquidity

Hanjin Heavy Industries has experienced significant financial difficulties, marked by bankruptcy and struggles with debt. The collapse of the Hanjin shipyard in the Philippines, valued at over a billion dollars, exemplifies the financial strain the company has faced. Moving through bankruptcy proceedings and attempts at restructuring have been recurring themes in recent years.

• Hanjin Heavy's Philippine unit filed for court receivership 🗓 January 8, 2019, due to its inability to service its debt.
• The Philippines' largest shipyard was forced to close 🗓 February 15, 2019, impacting Hanjin's rescue efforts.
• Hanjin reached an agreement with lenders in Manila 🗓 February 15, 2019, as part of a debt restructuring attempt.
• Hanjin's shipbuilding subsidiary in the Philippines was involved in debt talks 🗓 September 4, 2024, following financial trouble.
• A decision finalized the company's debt agreement 🗓 September 9, 2024, maintaining a role for the Subic shipyard.

⚖️ Legal & Regulatory

Legal issues have not been primary drivers in the public facade of Hanjin Heavy Industries' struggles. However, interactions with regulatory entities and restructuring proposals hint at underlying legal complexities.

• The South Korean regulator reviewed the fusion of HHIC with DSME 🗓 January 14, 2022, potentially influencing competitive practices.

👥 Labor & Workforce

Labor and workforce issues have persisted, partly due to the financial upheavals. Concerns about layoffs and employment conditions remain critical, impacting both workforce stability and public perception of the company.

• In the Philippines, the closing of the shipyard 🎨 forced many layoffs following Hanjin's collapse 🗓 February 15, 2019.
• A trade unionist struggled for 37 years over employment rights concerns, finally seeing resolution 🗓 February 24, 2022.

🏗️ Operational & Business Continuity

Operational challenges have plagued Hanjin Heavy Industries, directly tied to the financial strains faced by the company. Disruptions in business continuity, amplified by closing of major facilities, pose ongoing risks.

• Cash-strapped Hanjin Philippines was forced to halt production amidst financial collapse 🗓 March 14, 2019.
• Financial tremors resonated through manufacturing operations, as operations ceased in the Philippines shipyard 🗓 February 15, 2019.
• Shipbuilding in Subic faced government scrutiny for redevelopment 🗓 January 17, 2019, emphasizing operational discontinuities.