Korean Air Lines Co., the largest shareholder of the cash-strapped Hanjin Shipping, was unable to decide on Sunday how to provide funding for the nation’s leading container shipping line.

An official at Korean Air said the company convened an emergency board of directors meeting Sunday to discuss its plan to offer Hanjin Shipping 60 billion won (US$53.3 million) and help ease the cargo crisis triggered by Hanjin’s receivership. The meeting was scheduled at the last minute, the official added.

Earlier this month, Hanjin Group, the parent company of Hanjin Shipping, pledged to provide some 100 billion won for the ailing shipper, including 40 billion won in personal assets from Cho Yang-ho, the group’s chairman.

Cho has secured his share, but Korean Air’s board hasn’t reached a conclusion after several rounds of meetings, as it has demanded collateral for the cash injection.

The board wants to hold Hanjin Shipping’s terminal at Port of Long Beach in California as collateral, but the government has balked at the idea because it would require approval from another shareholder, MSC, and six foreign financial institutions from which Hanjin has already taken out collateral loans.

The Korean Air official said the company will seek to schedule another board meeting at the earliest date possible.

Hanjin Shipping’s receivership earlier this month sent ripples through global shipping flows, with more than half of its ships stranded at sea out of fears that they may be seized by its creditors.

A local court has ordered Hanjin Shipping to submit its self-rehabilitation plan by Nov. 25.

Since 2011, Hanjin Shipping has suffered losses. Early in September, the creditors rejected Hanjin’s self-rescue plan worth 500 billion won, saying it is far short of the cash needed to save the shipper.

Source: Yonhap