Hanjin KAL to sell off its Waikiki Resort Hotel at $108 mn

South Korea’s Hanjin KAL Corp. will sell the assets owned by its Hawaii-based subsidiary Waikiki Resort Hotel Inc. to US company AHI-CLG LLC at 146.6 billion won ($108.4 million) on Sept. 15, the holding firm of Korean Air Lines Co. said on Friday.

Hanjin KAL will divest all real estate and related assets of Waikiki Resort Hotel, excluding cash and cash equivalents worth $121 million, the owner of the Korean flag carrier stated in a disclosure.

Waikiki Resort Hotel is wholly owned by Hanjin KAL. The Korean conglomerate stated that the purpose of divestment is to secure funds.

Hanjin KAL accelerates selling off its assets to secure liquidity. The company divested a Seoul-based office tower, named KAL Building, to Korean Air Lines at 264.2 billion won in August.   

It also raised 24 billion won by bond issuances in the private market last month. The fundraising followed a 10 billion won bond issuance in July, which Hanjin KAL said would be used for business operations.

The company strives to raise money as its 104 billion won worth of debts mature later this year, market watchers say.

Write to Hyun-Ju Jang at blacksea@hankyung.com

Jihyun Kim edited this article.