Liquidation of Hanjin Shipping by The End of November
Hyundai Merchant Marine (HMM) and Korea Line have submitted final bids for the Asia – US business of bankrupt Hanjin Shipping.
The Seoul Central District Court, which is overseeing Hanjin’s receivership, is set to announce the preferred bidder next week and aims to conclude the sale by the end of the month, MANA correspondent reported.
Hanjin’s transpacific business comprises staff, five containerships and 10 overseas businesses, and HMM and Korea Line’s bids also include a 54% stake in a container terminal in Long Beach. Five companies submitted initial bids for Hanjin’s Asia – US business.
It would appear to be the beginning of the end for Hanjin, which has already announced plans to close down its European operations. Hanjin filed for court receivership on 31 August and has until December to submit a restructuring plan, but liquidation now seems the most likely scenario.
According to Pulse in South Korea the company has notified 560 seafarers that their service will end on 10 December. It reported that a further 2,000 staff would be dismissed by the end of the month.
The number of vessels under Hanjin’s control was down to just 14 this week, compared to 97 containerships in its fleet when it filed for receivership. Of the 14 remaining vessels five are under arrest.