The firm filed a financial rehabilitation plan before the Olongapo City Regional Trial Court Branch 72.
The firm filed a financial rehabilitation plan before the Olongapo City Regional Trial Court Branch 72.
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Hanjin halts operations in Subic
Bebot Sison Jr. (The Philippine Star) - February 17, 2019 - 12:00am

SUBIC BAY FREEPORT, Philippines — Hanjin Heavy Industries and Construction Philippines stopped its operations at this freeport on Friday, displacing around 3,000 workers.

Hanjin, the world’s fifth largest shipyard and biggest investor here, had earlier declared bankruptcy, saying it owes some $400 million from Philippine banks aside from $900 million in debts from lenders in South Korea.

The firm filed a financial rehabilitation plan before the Olongapo City Regional Trial Court Branch 72.

Last month,the court granted its petition for receivership and placed the South Korean shipbuilding firm under corporate rehabilitation.

Stefani Saño, former board member and senior deputy administrator for investment and business group of the Subic Bay Metropolitan Authority, was appointed by the court as the rehabilitation receiver.

Saño said he drafted a plan that would have allowed Hanjin to complete the six vessels still on its books while searching for an investor.

However, he resigned last week amid complaints from creditors.

At its peak, Hanjin employed up to 30,000 Filipinos. The number of Filipino workers dropped to around 20,000 in 2017.

Last year, 18 Hanjin contractors and subcontractors filed notices of retrenchments and reduction of workdays.

Thousands of jobs were offered to affected workers at a job fair held here last week.

HEAVY INDUSTRIES AND CONSTRUCTION PHILIPPINES
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