Hanjin Shipping Bankruptcy Costs $10 Billion
South Korean shipping company Hanjin Shipping has raised only $220 million, or about 2%, of the $10.5 billion that creditors claim is due, according to the Wall Street Journal.
A trustee charged with Hanjin Shipping’s Korean bankruptcy case in in Seoul said Hanjin has raised about $220 million since filing for bankruptcy nearly a year ago.
At least 180 creditors were present for the court hearing on June 1, 2017.
Hanjin Shipping in court was unable to say when distribution to creditors would begin.
Formerly ranking in the top 10 for global shipping, Hanjin has recently sold ships and other assets to pay off creditors.
Earlier in the year, Hanjin Pacific Corporation (HPC) sold its 100% stake in Tokyo (Japan), Kaohsiung (Taiwan) and Algreciras (Spain) terminals for US$13.15 million to fellow Korean shipping company Hyundai Merchant Marine.
Hanjin Shippng was declared bankrupt on February 17, 2017 by a South Korean court. Hanjin's collapse is the largest to hit the shipping sector and sent shockwaves through the industry.