Comment / Analysis: lenders fear Korean Air Lines could catch a cold from Hanjin

© Roberto Maggioni

Korean Air Lines, Hanjin Shipping’s largest shareholder, has provided little help to its subsidiary since bankruptcy emerged as the most likely outcome for the troubled carrier, deciding to commit and loan only $54m to the cause. How so?

On the one hand, its latest aborted round of financing and balance sheet show why clients of Hanjin – now forced to sell its Asia-US route network to pay creditors – should not count on any additional support from the flagship airline, which, arguably, has ...