South Korean Seoul Central District Court declared Hanjin Shipping bankrupt after two-week period for appeal expired. The court ruling earlier this month that the container shipping company’s liquidation value would be worth more than its operational value. Seoul Central District Court is now taking steps to liquidate the company and has appointed attorney Kim Jin-han as its trustee, who will care to sell any remaining ships and other assets. During the process of liquidation, the court promised to make efforts to pay back debts to creditors with creditors asked to submit claims by May 1 for evaluation starting June 1, when will be the first meeting of creditors.
“The court will, through the bankruptcy process, make efforts so the maximum of debt repayment will be conducted in a way that is fair and balanced to the creditors”, said the statement of Seoul Central District Court.
Seoul Central District Court closed the Hanjin Shipping’s rehabilitation proceedings earlier this month, saying that liquidation would bring more value to creditors, with its major assets mostly sold off. The decision was followed by two-week period for appeal, which expired today and the company was officially announced in bankruptcy.
Hanjin Shipping was a South Korean integrated logistics and container transport company, established 40 years ago by the Cho family, who also control Korean Air. Hanjin’s bankruptcy is the largest in container shipping history. The company owned 60 liner and tramper services around the globe transporting over 100 million tons of cargo annually. Its fleet consists of many container ships, bulk and LNG carriers. Hanjin Shipping has its own subsidiaries dedicated to ocean transportation and terminal operation and it has several branch offices in various countries.