A South Korean court has agreed to formally end Hanjin Shipping Co Ltd’s court receivership process after a two week appeal period.
A court in Seoul decided today (February 2, 2017) that any method of rehabilitation for the South Korean shipping company is over, thus heralding liquidation. The formal announcement for bankruptcy will be made by the Seoul Central District Court on February 17, 2017 – essentially ending the Hanjin legacy for good.
An accounting firm estimated the liquidation value of the shipping line at $1.56 billion saying, that the liquidation of the troubled shipper is “more economical” than continuing on a rehabilitation scheme.
The shipping line, which was formed in 1977, was South Korea’s number one shipper and one of the largest shipping lines in the world before its untimely collapse in August 2016. Hanjin were crippled with debts of more than USD $5 billion.
In recent months, Hanjin has been dismantled bit-by-bit, with vessels, assets and even staff being transferred. The most recent of these was the eventual wrap-up of Hanjin’s stake in terminal operator TTI, who own terminals at the Port of Long Beach and the Port of Seattle.