The Board of Investments (BOI) expects a breakthrough outcome of the rehabilitation of financially-distressed Hanjin Shipyard with an announcement expected in two to three weeks.
Ceferino Rodolfo, BOI managing head, said at the public consultation of the Strategic Investment Priorities Plan (SIPP) on Friday, the rehabilitation is a key component of the country’s shipbuilding and ship repair industry which forms part of the critical infrastructure for industrial development cluster pushed by the government.
Without going into details, Rodolfo said Australian global shipbuilding firm Austal Ltd. may be part of the rehabilitation process “but it won’t be the main (player).”
“A group will come in and will assume the assets and the debts. The group would eventually rehabilitate, retrofit and operate Hanjin,” he said.
The shipyard has been closed since 2017.
Government will retain control of a part of the facility, according to Rodolfo.
The shipyard’s operator, Hanjin Heavy Industries and Construction Inc. (HHIC-Phil) filed for bankruptcy in 2019 after failing to pay its $1.3 billion loans, of which $900 million is owed to South Korean banks and the rest to five Philippine lenders.
In the same year, it was reported Austal Ltd and US private equity firm Cerberus were considering a joint bid for the facility.
The Philippine Navy mid last year y signed a “term sheet” with HHIC-Phil) for the use of its facility in Subic, Zambales.
