It's on us. Share your news here.

Seoul Court Calls for Sale of Hanjin Shipping’s Asia-US Network

Posted on October 18, 2016

By Xiaolin Zeng, IHS

Hanjin Shipping confirmed on Thursday that the Seoul Central District Court has given the go-ahead to sell the troubled company’s Asia-US container shipping business.

South Korea’s largest liner operator went into receivership on 1 September and was scheduled to submit a rehabilitation plan on 23 December.

However, before that could be done, the court began exploring ways to preserve Hanjin Shipping through selling the company. Media reports had mentioned that the court is in favour of selling Hanjin Shipping to another liner operator and Maersk Line, having declared it is interested in acquisitions, has been tipped as a possible buyer.

According to a Korea Exchange filing, Hanjin Shipping stated that interested bidders should submit a letter of intent and confidentiality agreement by 15.00 hrs local time on 28 October.

A preliminary inspection of these documents and the distribution of an information package to the bidders will take place from 31 October to 4 November.

Bidders must submit a final proposal by 15.00 hrs local time on 7 November.

IHS Fairplay understands that the sale of Hanjin Shipping’s Asia-US shipping business was decided by the court and not the company.

A company spokesman told IHS Fairplay that Hanjin Shipping will still submit a rehabilitation plan as scheduled.

With regard to staff departures from Hanjin Shipping’s US office, the spokesman said that as of 1 October, 180 US staff have left the company.

“This was due to service restructuring and has nothing to do with the court-led receivership,” said the spokesman.

The company’s stock price closed 29.77% higher today at KRW1,395 (USD1.23).

Hanjin Shipping was compelled to seek bankruptcy protection after accumulating debt of over USD5 billion and losing its banks’ support.

Source: IHS

It's on us. Share your news here.
Submit Your News Today

Join Our
Click to Subscribe