Hanjin’s unsecured creditors, including banks, bondholders and trade debtors are expected to recover close to zero of their outstanding claims, according to Alphaliner.
Asset sales recorded so far by Hanjin Shipping have generated only US$157 million. The company’s total liabilities stood at $6 billion at the end of September 2016.
The company’s total assets were valued at $3.8 billion while shareholder’s equity showed a deficit of $2.05 billion, stated Alphaliner.
A South Korean court is now handling the liquidation process to sell off the remaining assets and pay back creditors.
The Hanjin Shipping bankruptcy was formally declared on February 17, 2017, marking the largest-ever container shipping bankruptcy in history.
Korean companies account for three out of the seven largest container shipping bankruptcies since 1980 when measured by the size of the containership fleet operated.
South Korea is now left with Hyundai Merchant Marine (HMM) taking over as the country's biggest shipping company.