On February 17, the Seoul Central District Court officially declared the bankruptcy of Hanjin Shipping Co Ltd which had been the world’s seventh-largest container shipper. Earlier this month, the South Korean Court decided in favor of a bankruptcy following estimation that the company’s liquidation value would be worth more than its value.
Hanjin Shipping had been operating approx. 70 liner and tramper services and transporting more than 100 million tons of cargo annually for 40 years since its foundation. The company applied for court receivership in late August after failing to get any support from its creditors to recover from debts.
According to Reuters, the Court further said in a statement it has chosen a bankruptcy administrator, and claims by creditors are due by May 1, 2017.
“The court will, through the bankruptcy process, make efforts so the maximum of debt repayment will be conducted in a way that is fair and balanced to the creditors,” it said.
After the announcement of Hanjin’s official bankruptcy, the court handling the liquidation process will proceed to sell off the remaining assets and give the money to the creditors. The first meeting of creditors is due to be held on June 1, 2017.
BBC reports that analysts argue it is unlikely there will be another large carrier like Hanjin failing. South Korea is now left with Hyundai Merchant Marine (HMM) taking over as the country’s biggest shipping company.