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Hanjin Shipping put under receivership

All Headlines 19:34 September 01, 2016

SEOUL, Sept. 1 (Yonhap) -- A local court on Thursday approved a filing by financially shaky Hanjin Shipping Co. to be put under a court-led restructuring scheme, paving the way for the country's No. 1 shipping line to avert liquidation.

On Wednesday, the world's seventh-largest shipper filed for court protection after its creditors, led by the state-run Korea Development Bank, rejected its self-rescue scheme worth 500 billion won (USD$ 446 million), saying it was not enough to help the shipper get on a normalization path.

With the application accepted, Hanjin Shipping's assets will be frozen during a deliberation period, and new management is required to come up with a new self-restructuring plan by Nov. 25. The shipper's debts are estimated at some 6 trillion won as of the end of June.

"We decided quickly to begin court receivership for Hanjin Shipping, the country's leading shipper and the world's major container shipping line, given its presence in the local shipping industry and its impact on the economy as a whole," the Seoul Central District Court said.

The court appointed a local accounting firm to submit a report on the shipper's status by Sept. 28.

sam@yna.co.kr
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