HHI Hands In Self-Rescue Plan to Creditors

first_imgzoom South Korean Hyundai Heavy Industries (HHI) has joined its compatriot companies today by submitting a self-rescue plan to creditors, Yonhap news agency reports.The restructuring plan reportedly includes further job cuts and asset sales worth up to USD 1 billion.Previously, reports emerged that the shipbuilder’s self-help measures are to include slashing of 10 percent of its workforce, reaching up to 3,000 jobs, along with disposing off non-core assets, nearly 100 of its 390 business divisions.However, responding to market rumors, HHI said yesterday in an exchange filing that it was not considering a pre-IPO of refining unit Hyundai Oilbank as part of its restructuring plan.At the end of April, the shipbuilding giant revealed that it had laid off 25 per cent of its executives as a first step within the framework of its massive job-cutting plan.The latest round of cost reduction measures follows a 42.2 percent fall in new orders at the company for the first quarter of 2016 year-on-year, with only five orders in the bag.The company’s shipbuilding business took a big blow with 63.2% lower orderbook reaching USD 234 million in Q1, 2016.The country’s shipbuilders, badly hit by the ordering slowdown prompted by shipping and offshore industry woes, have been very busy since the beginning of the year with activities aimed at boosting their liquidity and slashing losses accrued over the past year.These include Hanjin Heavy Industries & Construction Co. (HHIC) which has just signed a Memorandum of Understanding (MoU) on business normalization plan with its creditors, led by the Korea Development Bank.The state-run bank has also urged the country’s shipbuilder Samsung Heavy Industries to devise a number of self-rescue measures.The move from the South Korean government comes amid the need to push harder for the restructuring of vulnerable industries which were affected by a global slowdown to reduce overcapacity and boost long-term competitiveness.Under a three-track plan revealed recently by the country’s financial regulator, the Financial Services Commission, Daewoo Shipbuilding & Marine (DSME), one of the country’s big 3 shipbuilders, will be required to submit layoffs and cost savings, while the other two, HHI and SHI, would have to pursue self-rescue plans with their creditor banks.World Maritime News Stafflast_img read more

City of Saskatoon hit by 104 M fraud by scammer posing as

The City of Saskatoon is reviewing its procedures after falling prey to a fraudster who stole $1.04 million by posing as a construction company executive.The city called an “urgent” news conference on Thursday to announce the unprecedented loss and to warn others in the community.City manager Jeff Jorgenson said to his knowledge this type of theft has never happened at city hall before. He said the city is focused on recovering the money.The fraudster impersonated the chief financial officer of a prominent construction company to advise the city of a change in banking information. The payment of $1.04 million was sent to the fraudulent account.“So right now, the focus is on the recovery of funds,” Jorgenson told reporters packed into city hall’s media room. “The banks are working on it. The police are working on it. We have our internal auditor working on it as well. So that’s where our priority is.”Story continues belowThis advertisement has not loaded yet,but your article continues below.City hall found out about the fraud on Monday. Jorgenson said he could not reveal further details because there is an ongoing police investigation. He would not name the construction company.Jorgenson said a lot of the information on city contracts is made public, so city hall needs to ensure it has proper processes in place to protect against fraud.City hall staff have spoken to experts since the fraud was discovered to try to determine the probability of recovering the lost money.“The research we’ve done has shown that some agencies were able to recover a significant amount of money, some agencies found it virtually impossible to recover the money,” Jorgenson said. “What I would say is that we’re chasing down every lead, cautiously optimistic that we will be able to recover a significant portion of the funds.”Jorgenson said the contract with the company is not affected by the fraud and city hall still owes the money to the contractor.“Clearly, the control that was used wasn’t strong enough to prevent (the fraud),” he added. “What I would say is internal and external staff who are experts in this area are reviewing all financial processes and controls in this area.”The fraud began a “handful” of weeks ago and involved a single payment, Jorgenson said. No city employee has been disciplined because of the incident, he said, but a human resources investigation will happen after the police investigation.Mayor Charlie Clark, who also appeared at the news conference, said he is optimistic the money can be recovered because the fraud was identified early.“It’s a million dollars of taxpayer money,” Clark said. “The world’s changing quickly. The way that identity theft and the way some of these issues are happening can affect anybody. We are going to make sure it never happens again at the city.”City police sent out a news release on Tuesday warning residents about schemes. Police said Thursday that the $1.04-million fraud does not represent the largest the city police have investigated in terms of dollars, although further details were not immediately available.Last year, the City of Ottawa’s treasurer transferred close to $130,000 to a phoney supplier as a result of an impostor posing as Ottawa’s city manager. The U.S. Secret Service seized money wired to a bank account they had been monitoring, so some of the City of Ottawa’s money could be recovered, the Ottawa Citizen reported in April.This type of fraud, like the one at Saskatoon city hall, is a type of phishing scam known as whaling because high-level targets are being duped.City hall has filed an insurance claim for the lost money.ptank@postmedia.comtwitter.com/thinktankSKRelated Financial info returning to Saskatoon city hall reports Frauds on the rise in Saskatoon, crime stats show read more