Billionaire Razon sees 'potential' in Hanjin

Cathy Yang, ABS-CBN News

Posted at Feb 07 2019 02:23 PM | Updated as of Feb 07 2019 02:39 PM

Billionaire Razon sees 'potential' in Hanjin 1
Billionaire port magnate Enrique Razon says he sees 'potential' in debt-saddled Hanjin shipyard in Subic Bay. Jonathan Cellona, ABS-CBN News/File

MANILA -- Billionaire Enrique Razon said Thursday he saw "some potential" in developing Hanjin's facilities in Subic Bay, as the Korean shipbuilder seeks potential "white knight" investors.

Hanjin has infrastructure in place for a possible industrial complex with container port facilities a liquefied natural gas terminal, dry bulk handling facilities and an LNG power plant, Razon said in an email reply to ABS-CBN News.

There could also be a "scaled down" ship building ship repair facility, Razon said.

Bloomberg News reported earlier Thursday that Razon was interested in Hanjin but no offer has been made.

"We see some potential for the facility, given the infrastructure already in place, for an industrial complex with container port facilities, LNG terminal, dry bulk handling facilities, and to develop agricultural support handling facilities and an LNG power plant, etc. and possibly a scaled down ship building ship repair facility," Razon told ABS-CBN News.

Hanjin in January filed for rehabilitation before an Olongapo City court. Its 5 creditor banks, among the Philippines' biggest, are looking at collective action to settle its $412 million (P21.6 billion) debt.

"I think there is potential and hence some initial market reaction already. But given the comment it seems they are still exploring the idea of the takeover," said Regina Capital head of sales Luis Limlingan.

"Several" white knights are in discussions to rescue Hanjin, including companies from North America and Europe, said Subic Bay Metropolitan Authority Chairperson Wilma Eisma.

Hanjin could be left with just 300 workers from 3,000 should it fail to get a credit line by the time it finishes the last of its ongoing orders, Eisma said.

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