Hanjin Shipping to Close European Operations

South Korea’s Hanjin Shipping Co. said Monday it plans to close its European operations.

News ID: 69793

Date: 24 October 2016 - 12:01

According to MANA, Hanjin, South Korea’s largest shipping company, has applied for court approval to close all 10 of its business operations in Europe, including its regional headquarters in Germany, according to a company spokeswoman.
The company expects to start the process as early as this week after obtaining approval from the Seoul Central District Court, she said.
The decision to shut down its European business is part of a breakup process for Hanjin, which began earlier this month. A judge had said the court, which is handling Hanjin’s insolvency proceedings, would consider selling the company entirely.
Assets from the company’s Asia-U. S. route are already up for sale. Separately, the company is in talks with Swiss shipping giant Mediterranean Shipping Co. to sell its stake in the Long Beach Terminal in California.
Preliminary bids for the marketing network of Hanjin’s Asia-U. S. operations are due by Friday and the court expects an agreement to be signed by mid-November, amid efforts to raise funds for the indebted company. Hanjin had total debt of 6.03 trillion won ($5.3 billion) at the end of the second quarter.
As part of a restructuring plan, the company said last week it will slash nearly 60% of its 700 land-based workers.