INTERNATIONAL Container Terminal Services, Inc. (ICTSI) is negotiating with banks for the possible acquisition of Hanjin Heavy Industries and Construction Philippines’ (HHIC-Philippines) assets, a top official said.
“We’re still making presentations to the banks, the banks own it now…We’re developing a masterplan for Hanjin,” ICTSI Chairman and President Enrique K. Razon, Jr. told reporters after the company’s annual stockholders’ meeting in Solaire Resort and Casino on Thursday.
The discussions for the acquisition will include the payment of HHIC-Philippines’ loans and whether ICTSI will have a partner for the venture, among others.
Mr. Razon expressed his interest for the bankrupt shipbuilder’s assets back in February. HHIC-Philippines’ facilities are in the Subic Bay Freeport Zone. The local unit of the South Korean shipping company left some $412 million in outstanding loans from Philippine banks after it filed for corporate rehabilitation last Jan. 8. Overall, the company’s assets are estimated at about $1.6 billion.
“The banks will eventually give it to someone, they’re not going to run it themselves. The banks definitely want to get rid of it,” Mr. Razon said, although noting that they can opt to forego the deal “if it doesn’t work for us.”
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