The End of Hanjin Shipping - Officially Declared Bankrupt
Hanjin Shipping has been officially declared bankrupt, closing the book on the world’s seventh largest container shipping line.
According to MANA, Hanjin filed for receivership on 31 August 2016, one day after creditor banks pulled their support for the loss making shipping company which had some $5bn in debt.
While receivership gave Hanjin an opportunity to submit a rehabilitation plan Samil PwC concluded that the company was worth more in liquidation than as a going concern.
"We will make efforts to pay back debt to creditors, as much as possible, through the liquidation process," the court said. Creditors have until 1 May to make claims.
The bankruptcy is the biggest ever to hit the container shipping sector in over 50 years of its existence and sent shockwaves through the industry and the wider supply. With a 2.9% share of the global container shipping market Hanjin’s 96 boxships were left stranded at sea and outside ports when it filed for receivership with some $14bn worth of cargo onboard.