South Korea court to declare shipping giant Hanjin bankrupt

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Feb 02, 2017 (LBO) – South Korea’s shipping giant Hanjin Shipping is expected to be declared bankrupt this month, foreign media reports said.

The Seoul Central District Court told media that it would end court receivership and declare the company bankrupt on February 17 following a two-week period for appeals.

Demise of Hanjin Shipping is expected to cost about 3,000 jobs which includes employees and others working for its suppliers.

Hanjin, once the world’s seventh biggest shipping agency, filed for bankruptcy protection in August 2016 after its debt surpassed 5.37 billion US dollars.

Due to its financial collapse, Hanjin has lost control and ownership over large portions of its fleet and the majority of its chartered assets have been confiscated by creditors.

The company has now fallen from its rank as the world’s seventh-largest container line to the twenty-fourth largest.

Hanjin shipping operated some 60 liner and tramper services around the globe transporting over 100 million tons of cargo annually.

Its fleet consisted of many container ships, bulk and LNG carriers.